Paul Was Driving His Kids to a Piano Lesson in a 2005

question 17

Multiple Choice

Paul was driving his kids to a piano lesson in a 2005 minivan.While driving,he was hit by an uninsured motorist.Although Paul and his kids had only minor injuries,their vehicle was totaled.Based on this information,which of the following is correct?

• A) The uninsured motorist needs to purchase insurance after the fact.
• B) Paul's uninsured motorist's protection should cover medical expenses for Paul and his kids.
• C) The uninsured motorist will be required to purchase a new minivan for Paul's family.
• D) It is likely that the uninsured motorist will not receive any citations or fines because she did not have insurance.
• E) In all states, Paul's uninsured motorist's coverage must cover damage to all vehicles involved in the accident.

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Definitions:

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest of a deposit or loan every six months.

Monthly Payments

Regular payments made once a month, often in the context of loans or rent.

Compounded Monthly

Interest calculation method where interest is added to the principal balance each month, and future interest accrues on the total amount.

Principal Balance

The outstanding amount of a loan or debt not including interest or other charges.