CPCU 553 Chapter 2 Exam Questions with 100% Correct Answers | Verified & Updated

CPCU 553 Chapter 2 Exam Questions with 100% Correct Answers | Verified & Updated All of the following statements are true of automobile joint underwriting associations (JUAs), EXCEPT: - Answer ️️ -In states with joint underwriting associations (JUAs), all auto insurers in the state pay their proportionate share of underwriting losses and expenses, they do not actually issue policies Uninsured motorists coverage, as an approach for compensating automobile accident victims, has all of the following disadvantages, EXCEPT - Answer ️️ -The victim must prove that he or she has no other source of compensation before coverage applies. Insurance score as a rating factor for an individual auto insurance applicant is based on which one of the following? - Answer ️️ -Financial history Which one of the following statements is accurate with regard to state automobile insurance plans? - Answer ️️ -To be eligible to obtain insurance from state automobile insurance plans, applicants must show evidence that they have been denied auto liability insurance within a certain number of days. What is the most commonly used method of seeking compensation for injured auto accident victims in the US - Answer ️️ -The tort liability system Advantages of the tort liability system - Answer ️️ -Provides a remedy for victims of negligent or 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 - Answer ️️ -requires motorists to provide proof of financial responsibility under these circumstances: