Assignment
REVIEW QUESTIONS
1. a. What is a financial responsibility law? b. What is a compulsory insurance law?
2. a. Describe the characteristics of unsatisfied judgment funds.
b. How are unsatisfied judgment funds financed?
3. a. Describe the characteristics of a low-cost auto insurance plan.
b. What is a "no pay, no play" law?
4. a. What is no-fault auto insurance?
b. What is the difference between a monetary threshold and a verbal threshold?
c. Describe the major types of no-fault laws.
d. List the arguments for and against no-fault auto insurance.
5. Describe the characteristics of automobile insurance plans.
6. What is a joint underwriting association (JUA)?
7. Describe the characteristics of a reinsurance facility.
8. Describe the characteristics of specialty insurers.
9. a. Identify the factors that determine the premiums charged for auto insurance.
b. Explain the significance of an applicant's credit score in auto insurance underwriting and rating.
10. Explain the suggestions that consumers should follow when shopping for an auto insurance policy.