The Basic Purpose of FAIR Plans Is to Provide

question 20

Multiple Choice

The basic purpose of FAIR plans is to provide

• A)property insurance to persons who cannot obtain it in normal markets.
• B)automobile insurance to persons who cannot obtain it in normal markets.
• C)health insurance to persons who cannot afford it in normal markets.
• D)workers compensation insurance to employers who do business in several states.

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Definitions:

Liquidity Measures

Financial metrics used to determine an entity's ability to pay off its short-term obligations with available assets without significant loss.

Short-Term Obligations

Financial liabilities or debts that are due to be paid within a short period, typically within a year.

Financial Ratios

Quantitative measures derived from a company's financial statements used to assess its financial health, performance, and stability.

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-term debts with its liquid assets, critical for assessing financial health.