The Purpose of Gap Insurance Is to

question 28

Multiple Choice

The purpose of gap insurance is to

• A)pay the difference between the bodily injury liability limit purchased and the actual amount of bodily injury liability if it exceeds the limit.
• B)pay the difference between the amount the insurer pays if a car is a total loss and the remaining amount owed on a lease or car loan.
• C)pay the difference between the medical payments coverage limit and the actual medical expenses of injured family members or passengers in the insured auto.
• D)pay the difference between the uninsured motorists coverage limit and the actual amount of the medical expenses incurred by the insured.

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Definitions:

Sweepstakes

Promotional drawings in which prizes are given away at no charge to the participants, often used as a marketing tactic.

Contest

A competitive event or situation where participants try to win by doing something better than others.

Advertising Plan

A strategic document outlining the objectives, target audience, messaging, and channels for a specific advertising campaign, designed to achieve marketing goals.

Cause-Related Marketing

A marketing strategy where a company and a nonprofit organization form a partnership to promote a social or environmental cause.