Author Question: Ken purchased a PAP with liability limits of 100/300/50, medical payments coverage, and collision ... (Read 77 times)

colton · **on:** Jul 11, 2018

Ken purchased a PAP with liability limits of 100/300/50, medical payments coverage, and collision coverage. Ken fell asleep while driving late at night. He crossed the center line and hit a car approaching from the other direction.

The following losses occurred:
The driver of the other car suffered 30,000 in bodily injuries.
Ken's car sustained 5,000 in damages.
Ken incurred 5,000 in medical expenses.
The car that Ken hit was a total loss.
Which of Ken's Personal Auto Policy (PAP) coverages will cover the other driver's medical expenses?
A) bodily injury liability
B) collision coverage
C) medical payments coverage
D) property damage liability

Question 2

Which of the following statements about the Miscellaneous-Type Vehicle Endorsement to the PAP is (are) true?

I. It provides bodily injury liability coverage for any vehicle rented by the insured.
II. It can be added to PAP to insurance motorcycles and motor scooters.
A) I only
B) II only
C) both I and II
D) neither I nor II