Which of the Following Statements About Automobile Insurers That Specialize

question 36

Multiple Choice

Which of the following statements about automobile insurers that specialize in insuring high-risk motorists with poor driving records is (are) true?
I.The actual premium paid by an applicant is set by the federal government and is independent of an applicant's driving record.
II.The coverages available may be more limited than those written by insurers in the standard market.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Consolidation Worksheet

A financial document used for combining the financial statements of a parent company with its subsidiaries to present as one entity.

Equity Method

An accounting method used to assess the profits earned by investments in other companies by recording income equivalent to the investor's share of the investee's profits.

Cumulative Translation Adjustment

An entry in the comprehensive income section of a company's balance sheet that represents the aggregate effect of exchange rate changes on the translation of foreign subsidiaries' financial statements.

Current Rate Method

A method of foreign currency translation where all financial statement items are translated at the current exchange rate.