One of the Advantages of No-Fault Automobile Insurance Is That

question 81

Multiple Choice

One of the advantages of no-fault automobile insurance is that

• A)it does not use the legal system so the overall costs are much lower.
• B)it results in higher jury awards to victims.
• C)the injured receives immediate medical treatment through their own insurance.
• D)the drivers who are at fault face no penalties for their risky behaviours.

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Definitions:

Call Option

A financial agreement that grants the purchaser the option to acquire an asset at a predetermined price during a defined period, without being obligated to do so.

Obligation

A commitment or requirement to perform or refrain from performing some action in the future.

Buy

The act of acquiring ownership in a financial asset or good, often with the expectation that its value will increase over time.

Basis Risk

Basis Risk is the risk that the price difference between a futures contract and the underlying asset will widen or narrow, impacting hedging strategies.