Florida Insurance Licensing Practice Exam

If an insured is injured by an at-fault driver, and has injuries of $5,000, what amount will PIP pay if he has Florida No-Fault Basic PIP with a $1,000 deductible?

1. $3,000

2. $3,200

3. $4,000

4. $5,000

The correct answer is: $3,200

PIP stands for Personal Injury Protection, which is a type of insurance coverage that helps pay for medical expenses and lost wages after a car accident. In this case, the insured has $5,000 in injuries but also has a $1,000 deductible. This means that the insured will have to pay $1,000 out of pocket first before their insurance coverage kicks in. Therefore, the amount that PIP will pay is $5,000 - $1,000 = $4,000. Option A is incorrect because $3,000 does not take into account the $1,000 deductible. Option C is incorrect because it only covers up to $4,000 in injuries, but the insured has $5,000 in injuries. Option D is incorrect because it assumes that the insured does not have a deductible. Therefore, the correct answer is B, as it takes into account the