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Dan (driving his own car) picked up his friend Rodney to drive to their softball game. Both Dan and Rodney have a Personal Auto Policy (PAP) with $5,000 of medical payments coverage per person. Dan hit a parked car, and Rodney was injured, incurring $9,000 of medical expenses. How will this claim be settled under the other insurance provision of the PAP

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Answer:

B) Dan's insurer will pay $5,000 and Rodney's insurer will pay $4,000.

Explanation:

Based on the information given How will this CLAIM BE SETTLED under the other insurance provision of the PAP 1 is that Dan's insurer will pay the amount of $5,000 since Both Dan and Rodney HAVE A PERSONAL AUTO POLICY (PAP) with $5,000 of medical payments coverage and Rodney's insurer will pay the amount of $4,000 ($9,000-$5,000).

Therefore the claim will be settled when Dan's insurer pay $5,000 and Rodney's insurer pay $4,000.

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