Exam 23: Auto Insurance and Society

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.

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 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 in personal lines underwriting is controversial.

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

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

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

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 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(n)

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

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

All of the following statements about shopping for auto insurance are true EXCEPT

Which of the following statements about the characteristics of current no-fault laws is true?

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.

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

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)

The multi-car discount is based on the assumption that

Which of the following statements is true with respect to a pure no-fault auto insurance plan?