If Jim has Extended PIP and incurs $4,000 in medical expenses and $4,000 in lost income, how much will his insurance pay?

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Prepare for the Florida Claims Adjuster (6-20) Test. Use flashcards and multiple choice questions, with hints and explanations for each question. Ace your exam!

Multiple Choice

If Jim has Extended PIP and incurs $4,000 in medical expenses and $4,000 in lost income, how much will his insurance pay?

Explanation:
Extended PIP changes how benefits are paid for medical costs versus wage loss. In this scenario, medical expenses are covered at 80% and lost wages are covered at 100% under Extended PIP. So: - Medical: 0.80 × 4,000 = 3,200 - Lost income: 1.00 × 4,000 = 4,000 Total paid = 3,200 + 4,000 = 7,200 Note: this assumes no deductible or policy limits apply beyond what's stated.

Extended PIP changes how benefits are paid for medical costs versus wage loss. In this scenario, medical expenses are covered at 80% and lost wages are covered at 100% under Extended PIP. So:

  • Medical: 0.80 × 4,000 = 3,200
  • Lost income: 1.00 × 4,000 = 4,000

Total paid = 3,200 + 4,000 = 7,200

Note: this assumes no deductible or policy limits apply beyond what's stated.

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