Chapter 23

Chapter 23 - Chapter23 AutomobileInsuranceandSociety 1)...

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Chapter 23 Automobile Insurance and Society 1) Under financial responsibility laws, proof of financial responsibility is generally required under all of the following circumstances EXCEPT A) the use of an auto by any driver with fewer than 3 years of driving experience. B) an auto accident involving property damage over a specified amount. C) failure to pay a final judgment resulting from an auto accident. D) conviction for certain serious traffic offenses, such as driving while intoxicated. Answer: A Question Status: Revised 2) Defects of financial responsibility laws include which of the following? I. Accident victims may not be fully compensated for their injuries. II. They apply only to property damage losses, not to bodily injury claims. A) I only B) II only C) both I and II D) neither I nor II Answer: A Question Status: Revised 3) Criticisms of compulsory insurance laws include which of the following? I. They provide less than complete protection since they require only a minimum amount of liability insurance. II. Even with compulsory insurance laws, a substantial number of motorists continue to operate vehicles without insurance. A) I only B) II only C) both I and II D) neither I nor II Answer: C Question Status: Revised Chapter 23 Automobile Insurance and Society 275 4) 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) I only B) II only C) both I and II D) neither I nor II Answer: A Question Status: Previous Edition 5) Which of the following statements about uninsured motorists coverage is true? A) An innocent motorist must establish that the uninsured motorist is legally liable. B) The amount of coverage in most states must be at least $300,000. C) Property damage is covered in all states but bodily injury is not covered in all states. D) The coverage is very expensive and beyond the means of all but wealthy insureds. Answer: A
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Question Status: Previous Edition 6) Which of the following statements is true with respect to a pure no-fault auto insurance plan? A) Under such a plan, you would collect from your own insurer and retain the right to sue the other party if your injuries surpass a dollar or verbal threshold. B) Most no-fault plans that have been adopted by states are pure no-fault plans. C) Under such a plan, you would collect from your own insurer and retain the right to sue the other party without having to satisfy a threshold. D) Under such a plan, an accident victim cannot sue the other party, and no payments are made for pain and suffering. Answer: D
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This note was uploaded on 06/15/2011 for the course RIM 3331 taught by Professor Papp during the Spring '11 term at Troy.

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Chapter 23 - Chapter23 AutomobileInsuranceandSociety 1)...

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