Florida Insurance Claims Adjuster License Practice Exam

What does Additional PIP do?

1. Increases the limit by amounts for a premium increase and does not impact the $5,000 death benefit

2. Doubles the $10,000 limit with no premium increase

3. Reduces the $10,000 limit by amounts such as $5,000

4. Does not increase the limit but provides additional coverage for pets

The correct answer is: Increases the limit by amounts for a premium increase and does not impact the $5,000 death benefit

Additional Personal Injury Protection (PIP) is a type of insurance coverage that extends the set limit of $10,000 for medical expenses and lost wages resulting from a car accident. Option A is the correct answer because it explains that Additional PIP will increase the limit by specific amounts for a premium increase, while still maintaining the $5,000 death benefit. This means that the overall coverage limit will be higher and more benefits will be available to cover an individual's medical expenses and lost wages. The other options are incorrect because they either do not mention increasing the limit or provide incorrect information. Option B doubles the $10,000 limit but does not mention anything about a premium increase, which is not accurate. Option C implies that Additional PIP will reduce the $10,000 limit, which defeats the purpose of having this type of coverage. Lastly, Option D is incorrect because it describes coverage for