Solved

Which of the Following Statements Is (Are)true with Respect to the Use

question 1

Multiple Choice

Which of the following statements is (are) true with respect to the use of credit-based insurance scores as an auto insurance rating factor?
I.Insurers claim that drivers who have poor insurance scores are expected to have relatively more accidents.
II.The use of insurance scores has been banned as a rating factor in all states as it unfairly discriminates against certain groups of individuals.

Definitions:

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not yet been sold.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing net profit or loss.

Balance Sheet

A document showcasing a firm's financial condition through the presentation of assets, liabilities, and equity of shareholders at a particular moment, serving as a groundwork for assessing returns and scrutinizing its financial organization.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest held by shareholders.