Question

Which of the following is a covered person under the medical payments coverage of the personal auto policy (PAP)?
Select one:
a. a family member of the named insured if struck by an auto while crossing the street
b. a pedestrian struck by the named insured's auto
c. the named insured while she is operating her car as a taxi
d. a carjacker who is involved in an accident after stealing the insured's car
No-fault auto insurance in the US may reduce auto costs because
Select one:
a. it will pay more people,
b. large losses will not be paid,
c. lawyer fees will increase,
d. small claims are taken out of the court

Answer 1

Ans.1=

Option(A),i.e, a family member of the named insured if struck by an auto while crossing the street is the correct answer. It is because the PAP policy covers the insured and his family members, while operating a public conveyance or as pedestrian, when struck by a public conveyance.

Ans.2=

Option (D),i.e, small claims are taken out of the court is the correct answer as No - fault insurance compensates its' policy holders for the expenses incurred on minor injuries, irrespective of which party was responsible for the accident. As a result of this, these small claims are settled by No - fault insurance companies and these claims then do not reach the court.

=> I would be glad to receive a feedback or suggestion to the question answered above.

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