If Bad Drivers Can Usually Avoid Being Ticketed by the Police

question 23

Multiple Choice

If bad drivers can usually avoid being ticketed by the police, then insurance companies will

• A)use drivers' driving record as a signal.
• B)use drivers' driving record as a screening device.
• C)not be able to use drivers' driving record as a screening device.
• D)request driving records directly from the police and not from the individual applicant.

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Definitions:

Federal Exemption Scheme

A legal framework provided by federal law that allows individuals declaring bankruptcy to protect certain assets from creditors under specific conditions.

Motor Vehicle

A self-propelled vehicle used for transporting people or goods on land, such as cars, trucks, and motorcycles.

State Exemption Laws

Laws that protect certain types of personal property or assets from being seized or sold to satisfy debts or judgments, varying by state.

Pleading of Insolvency

The formal declaration by an individual or organization that they are unable to meet their financial obligations.