Which of the Following Statements Is True with Respect to a Pure

question 4

Multiple Choice

Which of the following statements is true with respect to a pure no-fault auto insurance plan?

• A)Under such a plan,you would collect from your own insurer and retain the right to sue the other party if your injuries surpass a dollar or verbal threshold.
• B)Most no-fault plans that have been adopted by states are pure no-fault plans.
• C)Under such a plan,you would collect from your own insurer and retain the right to sue the other party without having to satisfy a threshold.
• D)Under such a plan,an accident victim cannot sue the other party,and no payments are made for pain and suffering.

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Definitions:

Entity Assumption

The accounting principle that treats a business as a separate legal and accounting entity, distinct from its owners, managers, or operators.

Historical Cost Principle

An accounting principle that assets should be recorded and reported at their original purchase cost.

Going-Concern Assumption

An accounting principle assuming that a company will continue to operate indefinitely and not go bankrupt, impacting financial decisions and reporting.

Full Disclosure

The principle that requires a company to provide all necessary information in its financial statements to ensure they are complete and accurate.