A System That Requires Each Insurance Company Operating in a State

question 78

Multiple Choice

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

• A)no-fault insurance.
• B)an assigned risk pool.
• C)premium discounts.
• D)equal opportunity insurance.
• E)comprehensive coverage.

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Definitions:

Maturities

The dates on which debt instruments (such as bonds) or other financial contracts come due for payment of principal and interest.

Consumer Savings

Refers to the portion of disposable income that is not spent on consumption but is saved by individuals, often placed in savings accounts or invested.

Business Investment

Expenditures made by businesses to purchase capital goods or services intended to increase their productive capacity or efficiency.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.