Texas Property and Casualty License Practice Exam

What condition must be met for Personal Injury Protection (PIP) to be applicable?

1. The insured must be at fault

2. Must be included with all minimum limits of liability policies unless rejected

3. The insured must be a passenger

4. PIP is optional for all drivers

The correct answer is: Must be included with all minimum limits of liability policies unless rejected

Personal Injury Protection (PIP) is a crucial coverage that assists with medical expenses and other related costs due to injuries sustained in an auto accident, regardless of who was at fault. For PIP to be applicable, it must be included with all minimum limits of liability policies unless specifically rejected by the insured. This requirement stems from the aim of ensuring that individuals are covered for medical expenses following an accident, promoting prompt access to necessary medical care. The inclusion of PIP with minimum liability coverage ensures a baseline protection level for all drivers in Texas, thereby reducing the financial burden of medical costs after an accident, which can occur regardless of fault or other circumstances. Notably, the option to reject PIP must be communicated clearly to policyholders, allowing them to make an informed decision about whether to have this coverage. Understanding this core aspect of PIP helps highlight its role in the broader context of auto insurance, emphasizing the importance of having adequate protection in place for drivers and passengers alike.