Which of the Following Statements Is True of Collision Insurance

question 47

Multiple Choice

Which of the following statements is true of collision insurance?

• A) It covers the insured's vehicle against damages caused by another vehicle.
• B) It covers damages and losses the injured causes to third parties.
• C) It gives protection from car thefts, natural calamities, vandalism, and riots.
• D) It protects the driver and passengers of a vehicle who are injured by an uninsured motorist.

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Definitions:

Pretax Cost

The expense or cost incurred by a business before the deduction of taxes.

Debt

Money owed by one party to another, under conditions of repayment often including interest.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's worth from a financial statement perspective.

Capital Accounts

Financial records that show the capital contributions, withdrawals, and earnings of owners in a company.