The auto loss situations described below occur to Fred Jones, a single 22-year-old man who has the following coverage limits on the personal auto policy covering his 1968 Chevrolet Sport van (replacement cost of $30,000, with $27,000 depreciation):

Coverage A: Liability Coverage:

Bodily Injury Liability $15,000 each person

Bodily Injury Liability $30,000 each accident

Property Damage Liability $5,000 each accident

Coverage B: Medical Payments: $2,000 each person

Coverage C: Uninsured Motorist:

Bodily Injury Liability $15,000 each person

Bodily Injury Liability $30,000 each accident

Coverage D: Physical Damage:

Purchased Loss other than Collision coverage only ($1000 deductible)

8.Freds friend Shaggy owns a motorcycle. Fred is riding on the motorcycle on the seat behind Shaggy when Shaggy loses control of the motorcycle and drives off the side of the street. Fred incurs a $7000 bill at a nearby hospital emergency room due to the accident. How much if any of the $7000 will be paid by Freds PAP insurer?

A.$0

B.$1000

C.$2000

D.$7000

E.none of the above

9.Which of the following parts of the PAP are experience rated such that a claim results in an increase in the named insureds premium?

A.Part A Liability coverage

B.Part D Collision coverage

C.Part D Comprehensive (Loss other than collision) coverage

D.Answers a and b above

E.All the above are experience rated