Which of the following statements is true with respect to a pure no-fault auto insurance plan? A) Under such a plan, you would collect from your own insurer and retain the right to sue the other party if your injuries surpass a dollar or verbal threshold. B) Most no-fault plans that have been adopted by […]
Date: September 19th, 2020
A no-fault law under which benefits are paid to an accident victim without regard to fault and the accident victim can still sue the negligent driver who caused the accident is referred to as a(n) A) pure no-fault law. B) add-on no-fault law. C) modified no-fault law. D) choice no-fault law. ANSWER Answer: […]
Date: September 19th, 2020
A rational investor will always prefer an investment with a lower standard deviation of returns, because such investments are less risky. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements about modified no-fault laws is (are) true? I. Claims less than a certain dollar threshold must be assumed by the injured accident victim, but the injured person has the right to sue a negligent driver. II. Claims above a certain dollar threshold are paid in full by an injured accident […]
Date: September 19th, 2020
What is the present value of $11,463 to be received 7 years from today? Assume a discount rate of 3.5% compounded annually and round to the nearest $1. A) $7,210 B) $5,790 C) $6,508 D) $9,010 ANSWER D
Date: September 19th, 2020
Which of the following statements about uninsured motorists coverage is true? A) An innocent motorist must establish that the uninsured motorist is legally liable. B) The amount of coverage in most states must be at least $300,000. C) Property damage is covered in all states but bodily injury is not covered in all states. D) […]
Date: September 19th, 2020
Economic Value Added attempts to measure a firm’s economic profit rather than its accounting profit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The profit and loss (income) statement is compiled on a cash basis. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
After the Personal Auto Policy has been in force for 60 days (or is a renewal policy), all of the following are grounds for the insurer to cancel the policy EXCEPT A) nonpayment of premiums B) the insured’s license to drive is suspended C) the insurer discovers material misrepresentation by the insured in the application […]
Date: September 19th, 2020
The creation of value is driven by what factors? A) Cash flow and growth B) Growth and risk C) Profitability and growth D) Reducing risk ANSWER B Explanation: B) The primary goal of a firm is value creation, and that the creation of value is driven by two key factors: growth and risk.
Date: September 19th, 2020
