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.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Only statement I is true. Joint underwriting associations are created to provide coverage for high-risk drivers who cannot otherwise obtain insurance in the standard market. Underwriting losses are shared by all auto insurers based on their premiums written in the state. Statement II is false as the rates are set by the joint underwriting association, not the individual companies.

Which of the Following Statements About Joint Underwriting Associations for Insuring