If a State Requires All Drivers to Purchase Auto Insurance

question 156

Multiple Choice

If a state requires all drivers to purchase auto insurance, insurance companies still face the problem of

• A)correctly pricing their insurance.
• B)sunk costs.
• C)adverse selection.
• D)excess demand for their insurance.

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Definitions:

Engagement

The active involvement or participation in activities, work, or discussions.

Evidence-Based Practices

Techniques or interventions that are backed by scientific research and have been shown to be effective through empirical evidence.

Relationships

Connections or interactions between individuals or groups, often marked by emotional or professional bonds.

Engagement

The degree of interest, enthusiasm, or involvement an individual demonstrates towards a particular activity or subject.