Which One of the Following Is False Concerning the PAP

question 66

Multiple Choice

Which one of the following is false concerning the PAP?

• A)a pedestrian struck by an automobile can collect under his Medical Payments coverage
• B)defense, settlement, and supplementary payments are in excess of the stated limits of liability in the PAP
• C)Other Than Collision coverage will pay for theft of the automobile
• D)Medical Payments coverage will not pay for the insured's injuries if the accident is the insured's fault

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Definitions:

Absorption Costing

A system of accounting that encompasses the full range of manufacturing costs—direct materials, direct labor, and overheads both variable and fixed, within the cost framework of a product.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a net profit of zero.

Eastern Division

A geographical or operational segment of a larger organization designated to cover the eastern part of a country or area.

Fixed Expenses

Regular expenses that do not change in amount, such as rent or salaries.