Which of the following statements is (are)true with respect to the use of credit-based insurance scores as an auto insurance rating factor?
I.Insurers claim that drivers who have poor insurance scores are expected to have relatively more accidents.
II.The use of insurance scores has been banned as a rating factor in all states as it unfairly discriminates against certain groups of individuals.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement I is true as insurers do claim that there is a correlation between poor insurance scores and higher accident rates.
However, statement II is false as the use of credit-based insurance scores as a rating factor is legal in most states, although some states have restrictions on their use.

Which of the Following Statements Is (Are)true with Respect to the Use