Which of the Following Statements About Uninsured Motorist Coverage Is

question 96

Multiple Choice

Which of the following statements about uninsured motorist coverage is true?

• A)This coverage applies to bodily injury when you are in an accident with an uninsured driver, regardless of who was at fault.
• B)It does not apply to accidents caused by a hit-and-run driver.
• C)It replaces bodily injury liability when an accident is caused by another driver who is not insured.
• D)It does not pay out when a driver who is at fault has an insurance company that goes bankrupt.

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Definitions:

Perpetuity

A type of annuity that generates an infinite series of payments into the future, without an end date.

Present Value

The value now of a future monetary total or cash flows, based on an established return rate.

Cash Flow

The overall flow of cash and assets similar to cash entering and exiting a corporation.

Present Value

The value today of a sum of money expected in the future or a series of financial inflows, calculated with a specified rate of interest.