A Few States Have Enacted Laws to Make Minimum Amounts

question 16

Multiple Choice

A few states have enacted laws to make minimum amounts of liability insurance available at reduced rates to individuals who cannot afford regular insurance or who have limited financial assets to protect.The coverage made available through such a plan is called

• A)probationary insurance.
• B)uninsured motorists insurance.
• C)no-fault auto insurance.
• D)low-cost auto insurance.

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Definitions:

Flat Road Tax

A fixed-rate tax imposed on vehicle owners, irrespective of the vehicle's value, emissions, or usage levels.

Optimal Area

The most efficient or advantageous point or region for a particular activity or the achievement of the highest benefit given constraints.

Public Education

A system where the government provides educational services without direct charge to households, funded by taxation.

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit, often associated with public goods or services, like education and vaccination.