All of the Following Statements About Uninsured Motorist Coverage Are

question 3

Multiple Choice

All of the following statements about uninsured motorist coverage are true, except

• A) this coverage is recommended since many drivers are uninsured.
• B) it applies to accidents caused by a hit-and-run driver.
• C) it replaces bodily injury liability when you are at fault.
• D) it pays when a driver who is at fault has an insurance company that goes bankrupt.

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Definitions:

Risk

Exposure to uncertainty or potential financial loss; the chance that an investment's actual gains will differ from expected gains.

Consistency

A property of an estimator in statistics that indicates the ability to produce estimates closer to the true parameter value as the sample size increases.

Variability

The measure of how data points in a data set differ from the mean of the data set.

Sample Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values in a sample.