Which of the Following Statements Regarding Auto Insurance Is Not

question 62

Multiple Choice

Which of the following statements regarding auto insurance is not true?

• A) No-fault insurance programs do not hold a specific driver liable for causing an accident.
• B) Exaggerated personal injury claims result in additional insurance expenses of about $100 million per year.
• C) One reason for high auto insurance premiums is auto insurance fraud.
• D) If you drive a car, you need to have auto insurance.

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Definitions:

Forge

To create a fake version of something, such as a document or signature, with the intent to deceive.

HDCs

Stands for Holders in Due Course, referring to parties holding a negotiable instrument free from certain defenses and claims.

Drawer

In banking, the person who writes or creates a check. In the context of furniture, it is a sliding storage compartment.

Universal Defense

A defense that is valid against all holders of a negotiable instrument, including holders in due course (HDCs) and holders with the rights of HDCs. Universal defenses are also called real defenses.