Florida Insurance Claims Adjuster License Practice Exam

How much does Jim's insurance pay for his $4,000 medical expenses and $4,000 lost income under Extended PIP?

1. $7,200

2. $8,200

3. $4,200

4. $5,200

The correct answer is: $7,200

The most accurate answer to this question is A, $7,200. This is because Extended PIP, or Personal Injury Protection, is a type of auto insurance coverage that can help cover medical expenses and lost income resulting from an auto accident. Jim's $4,000 medical expenses and $4,000 lost income would require the full $8,000 coverage limit, but depending on the coverage limits and state regulations, the insurance company may only be required to pay a percentage of the total amount - in this case, 90%. Therefore, Jim's insurance would pay $3,600 for his medical expenses and $3,600 for his lost income, for a total of $7,200. Option B, $8,200, is an incorrect answer because it does not account for the possible limitation of coverage for lost income. Option C, $4,200, is incorrect because