One Effect of Government Mandating Participation in the Auto Insurance

question 11

Multiple Choice

One effect of government mandating participation in the auto insurance market is it leads to:

• A) higher premiums for all participants.
• B) lower premiums for all participants.
• C) the collapse of the market.
• D) free coverage for some participants.

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Definitions:

Public Company

A company whose shares are traded freely on a stock market, with disclosure of financials and other significant information to the public.

Federal Government

The Federal Government is the national government of a federation, responsible for governing the entire country and managing affairs that go beyond the jurisdiction of individual states or provinces.

Sarbanes-Oxley Act

In 2002, the United States passed a federal statute aimed at defending investors by advancing the veracity and trustworthiness of corporate disclosures.

Financial Reports

Documents containing detailed information about a company's financial health, including balance sheets, income statements, and cash flow statements.