Question
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
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
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