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

---

Definitions:

Car Purchase

The process of acquiring a vehicle for personal or business use, which may involve financing or leasing options.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Depreciation Table

A schedule that shows the depreciation expense, accumulated depreciation, and book value of each asset over its useful life.

Delivery Van

A Delivery Van is a type of vehicle used by businesses for the transportation of goods, products, or materials directly to customers or between locations.