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

question 17

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 the damage to the car that Ken hit?

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

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's profitability.

Bonds Payable

Bonds payable are long-term debts issued by corporations or governments, where the issuer promises to pay the bondholder a specific sum of money at future dates.

Common Stock

A type of equity security that represents ownership in a corporation, usually with voting rights.