The Term Used to Describe Plans in Which Automobile Insurers

question 3

Multiple Choice

The term used to describe plans in which automobile insurers participate to make insurance available to drivers unable to obtain coverage in the standard market is the

• A)foreign market.
• B)fair market.
• C)residual (shared)market.
• D)high-premium market.

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Definitions:

Account

A record summarizing all the transactions pertaining to a single thing in the accounting world, such as a specific person, a business entity, or a specific asset.

Collection Float

The time period between when a check is deposited into a bank account and when the amount is made available.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a specified person.

Deposits

Funds placed into an account at a banking institution for safekeeping, which can include money market accounts, savings accounts, and certificates of deposit.