In a cross-state accident with a Florida policy of 10/20/10 and Georgia minimum of 20/40/10, how will the Florida policy respond?

In a cross-state accident with a Florida policy of 10/20/10 and Georgia minimum of 20/40/10, how will the Florida policy respond?

• A. 10/20/10
• B. 20/40/10
• C. No coverage
• D. 20/40/20

Answer: (B)

When an auto accident involves more than one state, the liability coverage is determined by the state where the accident occurs. The insurer must meet that state's minimums if they’re higher than the policy’s own limits. Here, the Florida policy is 10/20/10, while Georgia’s minimums are 20/40/10. Since the accident happened in Georgia, the Florida policy will respond up to Georgia’s required limits for bodily injury: 20 per person and 40 per accident. The property damage minimum in Georgia is 10,000, which matches the Florida policy’s PD limit, so that remains 10,000. Therefore, the Florida policy responds with 20/40/10. The other options don’t fit because they either leave the BI limits at Florida’s lower level or incorrectly change the PD limit.

When an auto accident involves more than one state, the liability coverage is determined by the state where the accident occurs. The insurer must meet that state's minimums if they’re higher than the policy’s own limits. Here, the Florida policy is 10/20/10, while Georgia’s minimums are 20/40/10. Since the accident happened in Georgia, the Florida policy will respond up to Georgia’s required limits for bodily injury: 20 per person and 40 per accident. The property damage minimum in Georgia is 10,000, which matches the Florida policy’s PD limit, so that remains 10,000. Therefore, the Florida policy responds with 20/40/10. The other options don’t fit because they either leave the BI limits at Florida’s lower level or incorrectly change the PD limit.