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Risk Management and Insurance

Business

Quiz 21 :

Auto Insurance Continued

Quiz 21 :

Auto Insurance Continued

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Defects of financial responsibility laws include which of the following? I.Accident victims may not be fully compensated for their injuries. II.They apply only to property damage losses,not to bodily injury claims.
Free
Multiple Choice
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Answer:

A

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Which of the following statements about shopping for auto insurance is true?
Free
Multiple Choice
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Answer:

C

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Under financial responsibility laws,proof of financial responsibility is generally required under which of the following circumstances?
Free
Multiple Choice
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Answer:

C

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Which of the following statements about automobile insurers that specialize in insuring high-risk motorists with poor driving records is (are)true? I.The actual premium paid by an applicant is set by the federal government and is independent of an applicant's driving record. II.The coverages available may be more limited than those written by insurers in the standard market.
Multiple Choice
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Criticisms of compulsory insurance laws include which of the following? I.They provide less than complete protection since they require only a minimum amount of liability insurance. II.Even with compulsory insurance laws,a substantial number of motorists continue to operate vehicles without insurance.
Multiple Choice
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Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT
Multiple Choice
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Disadvantages of automobile insurance plans include which of the following? I.High premiums may cause many high-risk drivers to go uninsured. II.Large underwriting profits have resulted in high-risk drivers subsidizing the cost of insurance for good drivers in the voluntary markets.
Multiple Choice
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Which of the following statements about modified no-fault laws is (are)true? I.Claims less than a certain dollar threshold must be assumed by the injured accident victim,but the injured person has the right to sue a negligent driver. II.Claims above a certain dollar threshold are paid in full by an injured accident victim's insurer,and the right to sue a negligent driver is eliminated.
Multiple Choice
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A no-fault law under which benefits are paid to an accident victim without regard to fault and the accident victim can still sue the negligent driver who caused the accident is referred to as a(n)
Multiple Choice
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All of the following are arguments for no-fault automobile insurance laws EXCEPT
Multiple Choice
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Which of the following statements about joint underwriting associations for insuring high-risk drivers is (are)true? I.Underwriting losses are proportionately shared by all auto insurers based on premiums written in the state. II.Each company participating in a joint underwriting association sets it own rates.
Multiple Choice
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Which of the following statements about reinsurance facilities for insuring high-risk drivers is (are)true? I.Underwriting losses in the reinsurance facility are shared by all auto insurers in the state. II.An insurer must accept all applicants for insurance,but the insurer has the option of placing high-risk drivers in the reinsurance pool.
Multiple Choice
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All of the following are major rating factors for determining private passenger automobile insurance premiums EXCEPT
Multiple Choice
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Which of the following statements about unsatisfied judgment funds is (are)true? I.An accident victim must obtain a judgment against the motorist who caused an accident and must show the judgment cannot be collected. II.The major disadvantage is that the negligent uninsured motorist is relieved of legal liability.
Multiple Choice
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Which of the following statements about the characteristics of current no-fault laws is true?
Multiple Choice
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Which of the following statements about uninsured motorists coverage is true?
Multiple Choice
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Which of the following statements is true with respect to a pure no-fault auto insurance plan?
Multiple Choice
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Under which type of automobile insurance arrangement are all automobile insurers in a state assigned their proportionate share of high-risk drivers based on the total volume of automobile business written in the state?
Multiple Choice
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The term used to describe plans in which automobile insurers participate to make insurance available to drivers unable to obtain coverage in the standard market is the
Multiple Choice
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Which of the following statements about the factors affecting automobile insurance rates is true?
Multiple Choice
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