Upgrade to remove ads
Terms in this set (11)
Law that requires persons involved in automobile accidents to furnish proof of financial responsibility up to a minimum dollar limit or face having driving privileges revoked or suspended.
Financial responsibility laws
Law protecting accident victims against irresponsible motorists by requiring owners and operators of automobiles to carry certain amounts of liability insurance in order to license the vehicle and drive legally within the state.
Compulsatory insurance laws
Fund established by a small number of states to compensate accident victims who have exhausted all other means of recovery.
Unsatisfied judgement law
That part of the personal auto policy designed to insure against bodily injury caused by an uninsured motorist, a hit-and-run driver, or a driver whose company is insolvent.
Uninsured motorists coverage
Auto insurance alternative in which the injured person collects benefits from his or her insurer and does not have to sue a negligent third party who caused the accident and prove legal liability.
No-fault auto insurance
laws restrict an uninsured motorist from obtaining "non-economic" damages. That means uninsured motorists cannot take the driver responsible for the crash to court to recover damages
no pay no play laws
pool for placing high-risk automobile drivers that arranges for an insurer to accept all applicants for insurance. Underwriting losses are shared by all auto insurers in the state.
Formerly called assigned risk plan. Method for providing auto insurance to persons considered to be high-risk drivers who cannot obtain protection in the voluntary markets. All auto insurers in the state are assigned their share of such drivers based on the volume of auto insurance business written in the state.
Auto insurance plans
Organization of auto insurers operating in a state that makes auto insurance available to high-risk drivers. All underwriting losses are proportionately shared by insurers on the basis of premiums written in the state.
Joint underwriting associations
This set is often in folders with...
You might also like...
Worker's Comp Insurance
FIRE quiz 3 chpt 14
AINS 21 Segment A Section 2
Other sets by this creator
Econ 320 Exam 2