Question

Claimant A has bodily injuries in the amount of $49,500; claimant B, $19,500; and claimant C $14,000 arising out of a 4-car accident caused by the insured, whose PAP carries limits of 25/50/10. What will the insurer pay?

Answer 1

Answer:

$50,000, because that is the largest amount that the insurance company can cover per accident.

Explanation:

The PAP limit of 25/50/10 means that

• the maximum payable per injured person is $25,000
• the maximum payable to all injured people per accident is $50,000
• the maximum payable for property damage per accident is $10,000