Author Question: Some states do not require an individual to demonstrate the ability to pay an automobile liability ... (Read 64 times)

ashley · **on:** Jul 11, 2018

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)
A) unsatisfied judgement fund.
B) financial responsibility law.
C) uninsured motorist law.
D) compulsory insurance law.

Question 2

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?
A) alien insurers
B) guaranty fund insurers
C) specialty insurers
D) surplus lines insurers