What is the maximum amount Jim's PIP will pay if he has $20,000 in medical bills and a limit of $10,000?

Personal Injury Protection (PIP) coverage is designed to cover medical expenses related to injuries sustained in an automobile accident, regardless of who is at fault. In this scenario, Jim has incurred medical bills totaling $20,000. However, the key aspect to note is that his PIP policy has a limit of $10,000.

When determining the payout for PIP coverage, the insurance policy will only pay up to the specified limit, regardless of the actual medical expenses incurred. Therefore, in Jim's case, even though he has $20,000 in medical expenses, the maximum amount that his PIP will cover is capped at the limit of $10,000. This means that Jim can expect to receive a reimbursement of $10,000, which is the maximum allowable under his PIP coverage terms.

This principle is common in various types of insurance policies, where limits are established to define the maximum payout for covered expenses.