Arguments Often Used Against No-Fault Automobile Insurance Laws Include All

question 30

Multiple Choice

Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT

• A)It is often difficult to determine which driver was negligent when a multiple-vehicle accident occurs.
• B)Many injured persons will not be compensated for their full losses because payments for pain and suffering will be eliminated.
• C)The defects of the negligence system are exaggerated,and the system needs only to be reformed.
• D)Claims of efficiency and premium saving are exaggerated,and automobile insurance premiums might actually increase.

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Definitions:

Diluted Earnings

An earnings calculation that accounts for all potential shares that could be issued, showing the lowest possible earnings per share.

Preferred Stock

A type of stock that provides a specific dividend that is paid before any dividends are paid to common stockholders, and that typically does not have voting rights.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets, and giving voting rights in corporate decisions.

Net Income

The total profit of a company after all revenues, costs, and expenses have been deducted.