In Which of the Following Situations Would Medical Payments Be

question 15

Multiple Choice

In which of the following situations would medical payments be paid under an unendorsed PAP?

• A)injuries incurred while riding a motorcycle
• B)injuries incurred while an auto is being used without the presumption that permission would have been granted to use the auto
• C)injuries incurred in an auto while it is used in a share-the-expense car pool
• D)injuries incurred during the course of employment if workers compensation benefits are available

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Definitions:

Compounded Monthly

A process where interest earned on an investment is calculated and added to the principal each month, thereby earning interest in subsequent months.

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.

Time-Value

The belief that possessing money today is more valuable than having the same sum later, due to its capability to accrue earnings.

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal balance at the end of each month, so that the interest for the next month is calculated on a higher balance.