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:

Investment Centers

Divisions or units within a company for which the manager has responsibility over costs, revenues, and investments.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Service Revenue

Income earned by a company for the services it provides, rather than for selling physical goods.

Controllable Margin

The portion of profit or income that a manager has direct control over, often excluding fixed costs and expenses.