Florida Insurance Licensing Practice Exam

If Jack has an accident that is his fault and has liability insurance with 10/20/10 limits, what is the maximum potential payment from Jack's Personal Auto Policy to a guest passenger with $42,000 in medical expenses?

1. $10,000 (80% PIP + $2,000 Med Pay)

2. $32,000 ($10,000 PIP; $2,000 Med Pay; $20,000 BI)

3. NONE - Needs to have Health Insurance

4. $22,000 (PIP $10,000; Med Pay $2,000; BI $10,000)

The correct answer is: $22,000 (PIP $10,000; Med Pay $2,000; BI $10,000)

The maximum potential payment from Jack's Personal Auto Policy to a guest passenger with $42,000 in medical expenses would be $22,000. This is because the liability insurance with 10/20/10 limits covers bodily injury up to $20,000 per person, and the personal injury protection (PIP) and medical payments (Med Pay) cover a total of $12,000 ($10,000 PIP; $2,000 Med Pay) in medical expenses. Option A is incorrect because it only covers 80% of PIP and $2,000 Med Pay, which is less than the total medical expenses. Option B is incorrect because it only covers $10,000 PIP, $2,000 Med Pay, and $20,000 BI, which is still less than the total medical expenses. Option C is incorrect because it suggests that Jack needs to have health insurance