Statistical Discrimination in the Automobile Insurance Industry Means That Young

question 59

Multiple Choice

Statistical discrimination in the automobile insurance industry means that young male drivers who drive __________ will pay __________ rates relative to the number of claims they generate.

• A) carefully;lower
• B) recklessly;higher
• C) carefully;higher
• D) slowly;lower
• E) wildly;higher

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Definitions:

Back Alimony

Past due alimony payments that have not been paid as agreed in a divorce or separation agreement.

Guaranteed Student Loans

Loans for educational purposes that are backed by governmental or private entities, ensuring repayment to lenders in case of default.

Intentional Tort

A wrongful act done deliberately, which causes harm to another person, and for which the victim may sue the perpetrator.

Restricted Securities

Stocks, bonds, or other securities that are not freely tradable on the open market due to regulatory restrictions or the holding period requirements.