Exam 23: Auto Insurance and Society

Alan has been involved in three accidents and has been ticketed for a number of driving violations.He tried to purchase auto insurance,but three insurers refused to sell him coverage.The generic name for state plans designed to insure drivers like Alan is the

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

One benefit payable under a typical no-fault plan is "essential services expenses." Which of the following would be covered under this benefit?

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 few states have enacted laws to make minimum amounts of liability insurance available at reduced rates to individuals who cannot afford regular insurance or who have limited financial assets to protect.The coverage made available through such a plan is called

Janet was unable to obtain auto insurance in the voluntary insurance market.She was contacted by the state insurance department and notified that XYZ Insurance would be her insurer.Eric was also unable to obtain auto insurance,and he received a similar notice.ABC Insurance would be his insurer.The mechanism used in Janet's and Eric's state to provide auto insurance to high-risk drivers is a(n)

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?

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)

Which of the following statements about uninsured motorists coverage is true?

A few states have dual automobile insurance systems.A motorist can pay a higher premium and retain the right to sue under the tort system,or pay a lower premium and be covered under the state's no-fault law.This dual system is called a

Scott had trouble obtaining auto insurance.After three companies refused to insure him,he called the state insurance department.A representative suggested he obtain coverage through Last Chance Insurance Company because "that's all they insure-high-risk drivers." Scott contacted Last Chance.He was not refused coverage; however,the premium Scott was required to pay was three times greater than the average premium in the market.Last Chance Insurance Company is a(n)

Which of the following statements about the factors affecting automobile insurance rates is true?

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.

Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT

A credit-based score that insurers claim is highly predictive of future claims costs is an individual's

No-fault benefits are provided by adding an endorsement to the auto insurance policy.What is this endorsement typically called?

Which of the following statements is true regarding unsatisfied judgment funds?

A number of benefits are payable under no-fault plans.Under one provision,benefits are paid for tasks normally performed by the insured,including such things as lawn care,housework,and home repairs.These tasks are called

All of the following are arguments for no-fault automobile insurance laws EXCEPT

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.