The insured has PIP deductible of $1,000 and medicals of $12,000 with lost wages of $6,000. How much will PIP pay?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

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

The insured has PIP deductible of $1,000 and medicals of $12,000 with lost wages of $6,000. How much will PIP pay?

Explanation:
In Florida, PIP pays a portion of medical expenses after the deductible and a portion of lost wages, but total PIP benefits per incident are capped. Subtract the deductible from medical expenses: 12,000 − 1,000 = 11,000. Then pay 80% of that medical amount: 0.80 × 11,000 = 8,800. For lost wages, pay 60%: 0.60 × 6,000 = 3,600. Add them: 8,800 + 3,600 = 12,400. However, the total PIP benefits per accident are capped at 10,000, so the payment is limited to 10,000. Without the cap, the total would be 12,400, but the cap brings it down to 10,000.

In Florida, PIP pays a portion of medical expenses after the deductible and a portion of lost wages, but total PIP benefits per incident are capped. Subtract the deductible from medical expenses: 12,000 − 1,000 = 11,000. Then pay 80% of that medical amount: 0.80 × 11,000 = 8,800. For lost wages, pay 60%: 0.60 × 6,000 = 3,600. Add them: 8,800 + 3,600 = 12,400. However, the total PIP benefits per accident are capped at 10,000, so the payment is limited to 10,000. Without the cap, the total would be 12,400, but the cap brings it down to 10,000.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy