Joyce Was Injured by an Uninsured Drunk Driver While She

question 52

Multiple Choice

Joyce was injured by an uninsured drunk driver while she was riding in a friend's car.Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000.How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries?

• A)Each policy will pay $35,000.
• B)Joyce's policy will pay $50,000,and the friend's policy will pay nothing.
• C)Joyce's policy will pay $50,000,and the friend's policy will pay $20,000.
• D)The friend's policy will pay $50,000,and Joyce's policy will pay $20,000.

---

Definitions:

Credit Counseling

A service that provides assistance to individuals in managing their debts, budgeting, and making financial decisions.

Debt Adjustment

involves the reorganization of a debtor's outstanding obligations through negotiation or a formal plan to repay debts over time or reduce the total amount owed.

Chapter 9

refers to a chapter of the United States Bankruptcy Code, providing for the reorganization of municipalities (like cities and towns).

Solvent

The state of having assets in excess of liabilities; able to pay all debts.