Can anyone help? What am I missing here?
20, Sally has PAP with basic PIP and 1,000 Med Pay. She takes her friend Beckie with her on vacation to Tx. Sally drives her own car. In Tx a drunk runs the light and hits Sally and Beckie. Both are hurt. Sally has $4,000 in medical bills and Beckie has $5,000 in med bills. What will Sally's policy pay in total Med Pay and PIP?
22, Ralph has PIP and Liability of 10/20/10, and basic PIP with $1,000 deductible. He is running one day and is struck as a Pedestiran by a car. A week later he dies. Medical bills are $3,000 and lost wages are $1,000. how much, if any, will PIP pay in the claim?
I am getting wrong answers when working both up. Please help!
Hi Paul,
Here you go:
1) Sally: PIP will pay 80% of medical bills: $3200. med Pay will pay the remaining of the $4000 (total) - $800
Beckie : PIP will not pay anything as they were out of the state of FL and she does not have PIP of her own. Med pay will pay up to $1000.
So all together: $3,200 + $800 + $1,000 = $5,000
2) Medical bills: PIP will pay $3,000 - $1,000 (deductible) = $2,000 x 80% = $1,600
Lost wages: PIP will pay $1,000 x 60% = $600
for a total of $2,200.
As he died, PIP will pay up to $5,000 for expenses. As he did not go over $5,000 in medical + lost wages (to add up to the max PIP pays of $10,000), he will be getting the full $5,000.
So the total he will receive will be:
$2,200 + $5,000 (death) = $7,200
Hope it helps.
Good luck