Jenny Purchased a Personal Auto Policy (PAP)that Included Property Damage

question 10

Multiple Choice

Jenny purchased a Personal Auto Policy (PAP) that included property damage liability,collision coverage,medical payments coverage,and other-than-collision coverage.Jenny had too much alcohol to drink at a graduation party.While driving home from the party,Jenny ran off the road and hit a tree.Police responded to the accident,and Jenny was arrested for driving under the influence of alcohol.Which of the following statements is true regarding the damage to Jenny's car?

• A)Damage to the car is covered under Jenny's property damage liability coverage.
• B)Damage to the car is covered under Jenny's collision coverage.
• C)Damage to the car is covered under Jenny's other-than-collision loss coverage.
• D)There is no coverage as Jenny was intoxicated at the time of the accident.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Peak-period

A time of maximum activity or demand, often leading to higher prices and increased revenue for companies able to meet the demand.

Logistics Department

The division of a company responsible for the management of the movement and storage of materials, goods, and information.

Operating Divisions

Sections of a business organization that operate semi-autonomously, typically responsible for their own budgeting and profit and loss.