Gerry has a PAP with Liability coverage limits of 25/50/10 and a $1,000 Medical Payments coverage limit. He collides with another car (he is at fault) and the following losses are incurred: Bodily injury to the driver of the other car = $100,000.
Bodily injury to the passenger of the other car = $3,000.
Property damage to the other car = $11,000.
Bodily injury to Gerry's wife = $5,000.
How much will the PAP pay, in total, for this accident?
A) $119,000
B) $60,000
C) $43,000
D) $39,000

Question

Quizplus · Accepted Answer

Gerry's PAP with Liability coverage limits of 25/50/10 will pay up to $25,000 for bodily injury per person (with a maximum of $50,000 per accident), and up to $10,000 for property damage. The Medical Payments coverage of $1,000 will cover medical expenses for Gerry's wife. Therefore, the PAP will pay $25,000 for the driver's bodily injury (since it's the per person limit and the actual loss exceeds this), $3,000 for the passenger's bodily injury (as it's within the per person limit), $10,000 for property damage (the limit for property damage), and $1,000 for Gerry's wife's medical expenses, totaling $39,000.

Gerry Has a PAP with Liability Coverage Limits of 25/50/10