The Purpose of Minimum Insurance Legislation Is to

question 40

Multiple Choice

The purpose of minimum insurance legislation is to

• A)risk of injury or death.
• B)possibility of damage, destruction or theft.
• C)third party liability.
• D)A and B are correct.
• E)A, B and C are correct.

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Definitions:

Per Annum

Annually or per year, often used to describe rates or amounts calculated over the span of a year.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed-term investment, including the principal and interest.

Per-annum Rate

Another term for annual rate, indicating the interest rate or growth rate over a single year.

Bank Loan

Money lent by a bank to a customer, usually with interest, that is expected to be repaid within a certain period.