All of the Following Are Considered to Be Uninsured Vehicles

question 20

Multiple Choice

All of the following are considered to be uninsured vehicles for purposes of the uninsured motorists coverage of the PAP EXCEPT

• A)a vehicle owned by an individual who is insured,but for less than the amount required by the state's financial responsibility law.
• B)a hit-and-run vehicle,the ownership of which cannot be determined.
• C)a vehicle owned by an individual who purchased enough liability insurance to satisfy the state's financial responsibility law.
• D)a vehicle insured by a company which becomes insolvent before a claim can be paid.

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Definitions:

Free Entry

A market condition where new participants can enter the industry freely without facing prohibitive barriers to entry.

Zero Profits

A situation in which a company's revenues exactly equal its expenses, resulting in no net income or loss.

Price

The monetary value estimated, obligatory, or presented in compensation for an object.

MC

Short for Marginal Cost, it refers to the increase in cost that arises from producing one additional unit of a good or service.