Which of the Following Statements About Uninsured Motorists Coverage Is

question 8

Multiple Choice

Which of the following statements about uninsured motorists coverage is true?

• A)An innocent motorist must establish that the uninsured motorist is legally liable.
• B)The amount of coverage in most states must be at least $300,000.
• C)Property damage is covered in all states but bodily injury is not covered in all states.
• D)The coverage is very expensive and beyond the affordability of all but wealthy insureds.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant can significantly influence price or supply.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output.

Marginal Cost

The price of fabricating another unit of a good or service.