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

Question

Quizplus · Accepted Answer

Statement I is false. The actual premium paid by an applicant is dependent on their driving record, among other factors. There is no set premium determined by the federal government.

Statement II is true. Insurers that specialize in insuring high-risk motorists may offer more limited coverages than insurers in the standard market, as they are assuming a higher level of risk.

Which of the Following Statements About Automobile Insurers That Specialize