Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible?

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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

Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible?

Explanation:
The key idea is how PIP benefits interact with a tort claim in Florida. With medical bills totaling 16,000 and a PIP deductible of 1,000, you first pay that 1,000 out of pocket. After the deductible, 15,000 remains. PIP covers 80% of what remains, but the policy has a maximum payout of 10,000. So PIP will pay 10,000, and the portion of medical expenses not paid by PIP is 16,000 minus 10,000, which equals 6,000. In a not-at-fault tort claim, you can recover the medical expenses not paid by PIP, so the recoverable amount is 6,000.

The key idea is how PIP benefits interact with a tort claim in Florida. With medical bills totaling 16,000 and a PIP deductible of 1,000, you first pay that 1,000 out of pocket. After the deductible, 15,000 remains. PIP covers 80% of what remains, but the policy has a maximum payout of 10,000. So PIP will pay 10,000, and the portion of medical expenses not paid by PIP is 16,000 minus 10,000, which equals 6,000.

In a not-at-fault tort claim, you can recover the medical expenses not paid by PIP, so the recoverable amount is 6,000.

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