CPCU 553, Chapter 2 Exam | Questions with 100%
Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (25)
All of the following statements are In states with joint underwriting associations (JUAs),
true of automobile joint underwriting all auto insurers in the state pay their proportionate
associations (JUAs), EXCEPT: share of underwriting losses and expenses, they do
not actually issue policies
Uninsured motorists coverage, as an The victim must prove that he or she has no other
approach for compensating source of compensation before coverage applies.
automobile accident victims, has all
of the following disadvantages,
EXCEPT
Insurance score as a rating factor for Financial history
an individual auto insurance
applicant is based on which one of
the following?
Which one of the following To be eligible to obtain insurance from state
statements is accurate with regard to automobile insurance plans, applicants must show
state automobile insurance plans? evidence that they have been denied auto liability
insurance within a certain number of days.
, What is the most commonly used The tort liability system
method of seeking compensation for
injured auto accident victims in the
US
Advantages of the tort liability Provides a remedy for victims of negligent or
system irresponsible drivers
Injured victims are compensated and costs are
allocated to the wrongful party
May be an incentive for drivers to act responsibly
Financial Responsibility Law requires motorists to provide proof of financial
responsibility under these circumstances:
After a serious accident
After a conviction of an offense
Upon failure to pay a final judgment
Motorists who fail to provide proof suspension of license and vehicle registration
of financial responsibility face
Disadvantages of Financial It is after an accident or conviction
Responsibility Law Does not guarantee payment to victims
The minimum requirements may not fully
compensate a victim
Compulsory auto insurance law requires auto liability insurance for all motorists to
drive legally within the state
Advantage of compulsory laws requires proof of financial responsibility before an
accident
Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (25)
All of the following statements are In states with joint underwriting associations (JUAs),
true of automobile joint underwriting all auto insurers in the state pay their proportionate
associations (JUAs), EXCEPT: share of underwriting losses and expenses, they do
not actually issue policies
Uninsured motorists coverage, as an The victim must prove that he or she has no other
approach for compensating source of compensation before coverage applies.
automobile accident victims, has all
of the following disadvantages,
EXCEPT
Insurance score as a rating factor for Financial history
an individual auto insurance
applicant is based on which one of
the following?
Which one of the following To be eligible to obtain insurance from state
statements is accurate with regard to automobile insurance plans, applicants must show
state automobile insurance plans? evidence that they have been denied auto liability
insurance within a certain number of days.
, What is the most commonly used The tort liability system
method of seeking compensation for
injured auto accident victims in the
US
Advantages of the tort liability Provides a remedy for victims of negligent or
system irresponsible drivers
Injured victims are compensated and costs are
allocated to the wrongful party
May be an incentive for drivers to act responsibly
Financial Responsibility Law requires motorists to provide proof of financial
responsibility under these circumstances:
After a serious accident
After a conviction of an offense
Upon failure to pay a final judgment
Motorists who fail to provide proof suspension of license and vehicle registration
of financial responsibility face
Disadvantages of Financial It is after an accident or conviction
Responsibility Law Does not guarantee payment to victims
The minimum requirements may not fully
compensate a victim
Compulsory auto insurance law requires auto liability insurance for all motorists to
drive legally within the state
Advantage of compulsory laws requires proof of financial responsibility before an
accident
