The Purpose of Gap Insurance Is to

question 28

Multiple Choice

The purpose of gap insurance is to

• A)pay the difference between the bodily injury liability limit purchased and the actual amount of bodily injury liability if it exceeds the limit.
• B)pay the difference between the amount the insurer pays if a car is a total loss and the remaining amount owed on a lease or car loan.
• C)pay the difference between the medical payments coverage limit and the actual medical expenses of injured family members or passengers in the insured auto.
• D)pay the difference between the uninsured motorists coverage limit and the actual amount of the medical expenses incurred by the insured.

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Definitions:

Compensated for Injury

Receiving payment or restitution for physical or psychological harm suffered due to another's negligence or wrongdoing.

Balance of Probabilities

The standard of proof in civil cases, where the likeliness of one's claim being true must be greater than 50%.

Prosecutor

An attorney or legal official who presents the case against an individual accused of breaking the law in a criminal trial.

Jurisdiction

The legal authority granted to a court to hear and decide cases within a specified geographic area or over certain types of legal cases.