Which of the Following Is Not True About State Financial

question 27

Multiple Choice

Which of the following is not true about state financial responsibility laws?

• A) They require individuals who drive cars to purchase a minimum amount of liability insurance.
• B) They are the same for all states.
• C) They may require proof of insurance to register a car.
• D) They may require proof of insurance when drivers are involved in an accident.

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Definitions:

Taxable

Refers to income or transactions that are subject to tax by federal, state, or local taxing authorities.

Premiums

Payments made periodically to an insurance company by policyholders for coverage or to maintain a policy.

Income Recognition

The accounting principle that income should be reported in the fiscal period it is earned, regardless of when it is received.

Property

Items or assets owned by an individual or entity, which can include tangible objects like land or personal items, as well as intangible rights.