Exam 21: Auto Insurance (continued)

Some states have enacted laws which prohibit uninsured drivers from suing a negligent driver for noneconomic damages, such as pain and suffering. These laws are called

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

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

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 has been banned as a rating factor in all states as it unfairly discriminates against certain groups of individuals.

New Jersey's dollar-a-day auto insurance coverage is limited to

All of the following are major rating factors for determining private passenger automobile insurance premiums EXCEPT

Amber believes that her auto insurance premium is too high. Which of the following would most likely lower Amber's premium?

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.

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

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.

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

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. The mechanism used in Janet's state to provide auto insurance to high-risk drivers is a(n)

The multi-car discount is based on the assumption that

Bill was severely injured by an uninsured driver. Bill did not purchase uninsured motorists coverage, and the other driver, although held liable, could not pay the damages awarded. After exhausting other sources of recovery, Bill learned that his state is one of a few states that has a special fund to compensate innocent accident victims. These state funds are called

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

Under financial responsibility laws, proof of financial responsibility is generally required under which of the following circumstances?

The residual market for auto insurance is designed to provide insurance to

Ben lives in a state that has a no-fault auto insurance law. Another motorist failed to yield the right of way, and hit his car. Ben filed a claim with his own insurer. He also contacted a lawyer to discuss suing the other driver. The lawyer told Ben that while lawsuits resulting from auto accidents are permitted in the state, Ben's injuries were not severe enough to provide legal standing for a lawsuit. What type of no-fault law is in effect in the state where Ben lives?

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.

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?