46 notecards = 12 pages (4 cards per page)
Under financial responsibility laws, proof of financial responsibility is generally required under which of the following circumstances?
Defects of financial responsibility laws include which of the following?
Criticisms of compulsory insurance laws include which of the following?
Which of the following statements about unsatisfied judgment funds is (are) true?
Which of the following statements about uninsured motorists coverage is true?
Which of the following statements is true with respect to a pure no-fault auto insurance plan?
Which of the following statements about modified no-fault laws is (are) true?
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)
All of the following are arguments for no-fault automobile insurance laws EXCEPT
Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT
Which of the following statements about the characteristics of current no-fault laws is true?
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
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?
Disadvantages of automobile insurance plans include which of the following?
Which of the following statements about joint underwriting associations for insuring high-risk drivers is (are) true?
Which of the following statements about reinsurance facilities for insuring high-risk drivers is (are) true?
Which of the following statements about automobile insurers that specialize in insuring high-risk motorists with poor driving records is (are) true?
Which of the following statements about the factors affecting automobile insurance rates is true?
All of the following are major rating factors for determining private passenger automobile insurance premiums EXCEPT
Which of the following statements about shopping for auto insurance is true?
A state law that requires individuals who have been involved in an auto accident or who have been convicted for certain vehicle-related offenses to demonstrate the ability to pay liability claims up to a specified dollar amount is called a(n)
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
Sharon lives in a state that has a no-fault automobile insurance law. Under the law, an injured person has the right to sue the negligent driver only if the bodily injury claim exceeds a dollar or verbal threshold. The no-fault law in Sharon's state is a(n)
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
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
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
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)
In the state where Susan lives, drivers whom private insurance companies do not want to insure are placed in a common pool, and each insurer pays its pro rata share of pool losses and expenses. A common policy is used for all high-risk drivers. Susan's state handles high-risk drivers through a(n)
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)
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 is (are) true with respect to the use of credit-based insurance scores as an auto insurance rating factor?
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 credit-based score that insurers claim is highly predictive of future claims costs is an individual's
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
New Jersey's dollar-a-day auto insurance coverage is limited to
In Maryland, drivers who are unable to obtain auto insurance in the voluntary market are insured through a(n)
The multi-car discount is based on the assumption that
The residual market for auto insurance is designed to provide insurance to
No-fault benefits are provided by adding an endorsement to the auto insurance policy. What is this endorsement typically called?
"No pay, no play" laws have which of the following characteristics?
Which of the following statements is true regarding unsatisfied judgment funds?
One benefit payable under a typical no-fault plan is "essential services expenses." Which of the following would be covered under this benefit?
Some insurers are experimenting with the use of an electronic device that can be installed in a vehicle to track driving behavior. The insurers then use the information to help determine the appropriate auto insurance premium to charge. Such devices are called
Some insurance companies intentionally seek to insure motorists with poor driving records. These insurers commonly insure drivers who have been turned-down or canceled by other insurers. What name is given to insurers who provide coverage to these higher-than-average risks drivers?
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?
Some states do not require an individual to demonstrate the ability to pay an automobile liability claim until after the individual has been involved in an accident or has been convicted for certain offenses, such as driving under the influence of alcohol. This approach to dealing with compensating innocent auto accident victims is called a(n)