Ken Purchased a PAP with Liability Limits of 100/300/50,medical Payments

question 50

Multiple Choice

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 Ken's medical expenses?

• A)bodily injury liability
• B)collision coverage
• C)medical payments coverage
• D)property damage liability

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Definitions:

Corporate Bonds

Debt securities issued by corporations to raise capital, with the promise to repay the principal along with interest on specified dates.

Call Provision

Right of the issuer to buy a bond back from the investor before maturity at a specified price.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Mortgage Pass-Through

A type of security that pools mortgage loans and passes the principal and interest payments from borrowers to investors.