Question

5 of 10

Financial-responsibility laws

	require all drivers to carry auto insurance.
	are a form of no-fault insurance.
	require drivers to provide proof of financial responsibility in certain situations.
	are a tool to help rate auto insurance.

Question

6 of 10

Which of the following is not a problem associated with compulsory auto-insurance laws?

	They do not guarantee complete compensation for all injuries.
	They may not reduce the number of uninsured drivers.
	They do not reduce the number of auto accidents.
	Some drivers will purchase too much auto coverage.

Question

7 of 10

The primary factors used to rate auto insurance include all of the following except

	good-student discounts.
	age.
	gender.
	territory where the vehicle is garaged.

Question

8 of 10

Drivers who cannot purchase insurance from the voluntary market

	must drive without insurance.
	can purchase all of their insurance from the place they bought their car.
	may be able to obtain insurance through the residual market.
	must purchase a bond from the state showing they have money to pay for a loss.

Answer 1

5. Require drivers to provide proof of financial responsibility in certain situations is something that financial-responsibility laws refer to. It's being done to ensure that drivers can pay for the damage or injuries that they can cause.

6. Some drivers will purchase too much auto coverage is not a problem associated with compulsory auto insurance laws. Whereas the remaining ones are considered to be various problems associated with compulsory auto insurance laws.

7. Good-student discounts is not a primary factor that is being used to rate auto insurance. Whereas the remaining ones are primary factors in this context.

8. May be able to obtain insurance through the residual market is the option provided to drivers who cannot purchase insurance from the voluntary market. Whereas the remaining ones are not applicable in this context.