Which of the Following Statements Is (Are)true with Respect to the Use

question 1

Multiple Choice

Which of the following statements is (are) true with respect to the use of credit-based insurance scores as an auto insurance rating factor?
I.Insurers claim that drivers who have poor insurance scores are expected to have relatively more accidents.
II.The use of insurance scores has been banned as a rating factor in all states as it unfairly discriminates against certain groups of individuals.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

XYZ Corporation

A hypothetical or placeholder name often used to represent a generic, unspecified company or entity in discussions or examples.

Negotiable Instrument

A written promise or order to pay a specific sum of money that can be transferred to another holder.

Indorser

The person who signs and transfers a negotiable instrument, such as a check or promissory note, to another party.

Secondary Liability

The legal obligation to pay a debt if the primary obligor defaults, usually applied in cosigning contexts.