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Scott Had Trouble Obtaining Auto Insurance

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Scott had trouble obtaining auto insurance.After three companies refused to insure him,he called the state insurance department.A representative suggested he obtain coverage through Last Chance Insurance Company because "that's all they insure-high-risk drivers." Scott contacted Last Chance.He was not refused coverage;however,the premium Scott was required to pay was three times greater than the average premium in the market.Last Chance Insurance Company is a(n)


Definitions:

Residual Income

The amount of income that an individual or company retains after accounting for all costs and expenses.

Producer Price Index

An economic indicator that measures the average changes in prices received by domestic producers for their output.

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