Gerry Has a PAP with Liability Coverage Limits of 25/50/10

question 41

Multiple Choice

Gerry has a PAP with Liability coverage limits of 25/50/10 and a $1,000 Medical Payments coverage limit. He collides with another car (he is at fault) and the following losses are incurred: Bodily injury to the driver of the other car = $100,000.
Bodily injury to the passenger of the other car = $3,000.
Property damage to the other car = $11,000.
Bodily injury to Gerry's wife = $5,000.
How much will the PAP pay, in total, for this accident?

• A) $119,000
• B) $60,000
• C) $43,000
• D) $39,000

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Definitions:

Moral Transgression

An act that violates ethical, moral, or social norms, often resulting in feelings of guilt or shame in the individual.

Distributive Justice

The perceived fairness of how resources and rewards are distributed within a social group or organization.

Equal Pay Act

A law aimed at abolishing wage disparity based on sex by ensuring that men and women receive equal pay for equal work.

Seniority System

A hierarchical structure within an organization that prioritizes individuals and their decisions based on their length of service or tenure.