78. Megan is an out of state driver who holds her home state's minimum liability insurance coverage of 20/40/20. When she causes an accident in Alabama, how much liability coverage will her policy provide for the damage?
Answer: D
Megan's policy will provide 25/50/25 coverage for the damage in Alabama.
In Alabama, the minimum liability insurance coverage required is 25/50/25. Although Megan holds her home state's minimum of 20/40/20, when driving in Alabama, her coverage will be adjusted to meet the state's minimum requirements.
A) 35/75/35
This option exceeds the minimum liability coverage required in Alabama. While higher coverage might be beneficial in some instances, it does not represent the coverage that Megan's policy would provide in Alabama, making it incorrect.
B) 40471-
This option appears to be an invalid format for insurance coverage and does not convey any relevant information regarding liability coverage. Therefore, it cannot be considered correct.
C) 20/40/20
Megan's home state's coverage of 20/40/20 is below the minimum required by Alabama. While her policy starts with this amount, it will be adjusted to comply with Alabama's legal requirements, making this option incorrect.
D) 25/50/25
This is the correct answer because Alabama law mandates a minimum liability coverage of 25/50/25. Megan's insurance policy will automatically be adjusted to meet this state requirement when she is driving in Alabama.
Conclusion
Megan's liability coverage will be adjusted to meet Alabama's minimum requirements of 25/50/25, which makes option D the correct answer. The other options either exceed the requirement, are invalid, or do not meet the minimum coverage needed in Alabama, thereby confirming that D is the only viable choice.