No-Fault Benefits Are Provided by Adding an Endorsement to the Auto

question 17

Multiple Choice

No-fault benefits are provided by adding an endorsement to the auto insurance policy.What is this endorsement typically called?

• A)uninsured motorists coverage
• B)personal injury protection coverage
• C)nonowned vehicle liability coverage
• D)add-on benefits coverage

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Definitions:

Variable Expenses

Costs that change in proportion to the activity or volume of operations in a business, such as raw materials and labor costs.

Fixed Expenses

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Margin of Safety Percentage

A financial ratio indicating the difference between actual sales and break-even sales, used to determine the risk of incurring a loss.