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Which of the Following Statements About Joint Underwriting Associations for Insuring

question 28

Multiple Choice

Which of the following statements about joint underwriting associations for insuring high-risk drivers is (are) true?
I.Underwriting losses are proportionately shared by all auto insurers based on premiums written in the state.
II.Each company participating in a joint underwriting association sets it own rates.


Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, subject to testing and validation.

Tentative Statement

An initial proposition made without complete confidence or evidence, subject to further verification.

Scientific Law

A statement based on repeated experimental observations that describes some aspects of the universe, always under the same conditions.

Mathematical Formula

A concise way of expressing information symbolically, as in a mathematical or chemical equation.

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