Identify the Coverage That Fills in the Coverage Gap That

question 36

Multiple Choice

Identify the coverage that fills in the coverage gap that arises when the negligent party meets the financial responsibility law of the state, but the auto accident victim has losses in excess of the negligent driver's liability limit.

• A)Stacking coverage
• B)Supplementary motorist coverage
• C)Nonfortuitous coverage
• D)Underinsured motorist coverage
• E)Uninsured motorist coverage

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Definitions:

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Dividend Yield Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Par Value

A nominal value assigned to a security or stock as stated in the corporate charter.

Dividend Payout Ratio

This is a financial ratio that measures the percentage of earnings paid to shareholders in the form of dividends.