Under Which Type of Automobile Insurance Arrangement Are All Automobile

question 5

Multiple Choice

Under which type of automobile insurance arrangement are all automobile insurers in a state assigned their proportionate share of high-risk drivers based on the total volume of automobile business written in the state?

• A)automobile insurance plan
• B)unsatisfied judgment fund
• C)reinsurance facility
• D)specialty automobile plan

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Definitions:

Material Nonpublic Information

Confidential, significant information about a company that has not been released to the public and could affect its stock price or investment decisions.

Financial System

The complex of institutions, including banks, markets, and regulators, that facilitate the flow of funds between savers and borrowers.

Open Market Operations

Central bank activities that involve the buying and selling of government securities in the market to influence liquidity and interest rates.

Reserve Requirement

Central bank regulations regarding the minimum amount of reserves that commercial banks must hold against deposits.