Annette lives in Texas, and has a PAP with the minimum limits of liability required by law in this state, which are 20/40/15. She drives to Alaska, where the minimum limits of liability are 50/100/25. While in Alaska, she cause an accident. What is the most that her PAP will pay for the damages she caused others to suffer?
A) 20/40/15
B) 15/30/10
C) 50/100/25
D) 70/140/40

Question

Quizplus · Accepted Answer

Since the accident occurred in Alaska, the minimum limits of liability required by law in Alaska apply. Annette's PAP will pay up to the stated limits of liability in her policy, but since the accident occurred in a state with higher requirements for minimum limits of liability, those limits will apply. Therefore, Annette's PAP will pay up to $50,000 for bodily injury liability per person, up to a total of $100,000 per accident, and up to $25,000 for property damage liability per accident.

Annette Lives in Texas, and Has a PAP with the Minimum