Question
Roberline picked up her pal Kim to drive to their bowling tournament taking place 20 miles away. Both Roberline and Kim are in possession of
Roberline picked up her pal Kim to drive to their bowling tournament taking place 20 miles away. Both Roberline and Kim are in possession of a PAP (Personal Auto Policy) that contains $5,000 of medical payments coverage. Roberline accidently hit a parked car, causing injury to Kim, incurring $9,000 of medical expenses. How will this claim be settled under the other insurance provision of the PAP?
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| A. | Roberlines insurer will pay $5,000 and Kims insurer will pay $4,000.
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| B. | Both insurers will pay $4,500. |
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| C. | Roberlines insurer will pay $4,000 and Kims insurer will pay $5,000
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| D. | Roberlines insurer will pay $3,000, Kim's insurer will pay $3,000, and Kim must pay $3,000 out of her own pocket.
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
4th International Edition
013284298X, 9780132842983
