Deck 14: Risk Management for Auto Ownerspart II

Question 1

Auto insurance rates are directly influenced by hospital costs.

Answer 1

True

Question 2

The auto insurance industry has few companies selling insurance.

Answer 2

False

Question 3

Lawyers receive most of the benefits from auto insurance premiums.

Answer 3

False

Question 4

Lowering speed limits on interstate highways helps reduce traffic deaths.

Question 5

Better emergency room care has helped reduce auto accident deaths.

Question 6

Automobile insurance fraud has increased in recent years.

Question 7

In no-fault auto insurance, dollar thresholds are better than verbal ones at reducing costs.

Question 8

Auto accident rates differ by age, gender and marital status.

Question 9

Stronger car bumpers will reduce auto repair costs.

Question 10

The smaller the vehicle, the lower the death rate is in auto accidents.

Question 11

Larger deductibles are always better than smaller ones.

Question 12

No-fault auto insurance will always save insureds money.

Question 13

Because the legal drinking age is 21, drinking and driving is not a problem among teenagers.

Question 14

Teenage drivers who have taken drivers education courses are much less likely to be involved in an auto accident.

Question 15

OEM parts are only slightly more expensive than aftermarket parts.

Question 16

Matching :

-States that use no-fault insurance must set a dollar amount or a __________________ to determine at what point one can sue in tort to recover damages.

A) driving while intoxicated or DWI 1.
B) No-fault
C) verbal threshold

Question 17

Matching :

-A driver who has 0.10 % alcohol in his or her blood is said to be __________________.

A) driving while intoxicated or DWI 1.
B) No-fault
C) verbal threshold

Question 18

Matching :

-_________________ is a type of automobile insurance program that restricts one's right to sue. Each party looks to his or her insurance for recovery.

A) driving while intoxicated or DWI 1.
B) No-fault
C) verbal threshold

Question 19

Most of the premiums collected by auto insurance companies

A) are paid to insureds as benefits,
B) are retained as profits for the companies,
C) are paid to lawyers,
D) pay the expenses of the insurance companies.

Question 20

Which of the following is not a way to reduce auto insurance costs?

A) reduce frequency of accidents,
B) restrict payments to injured parties,
C) increase speed limits on interstate highways,
D) build stronger cars.

Question 21

Which of the following does not improve auto safety?

A) lightweight, high-mileage cars,
B) air bags,
C) child restraint laws,
D) center-mounted brake lights.

Question 22

No-fault auto insurance will reduce auto costs because

A) it will pay more people,
B) large losses will not be paid,
C) lawyer fees will increase,
D) more funds will be distributed to injured parties.

Question 23

Drunk driving can be significantly reduced

A) with harsh penalties,
B) by raising the legal driving age,
C) by increasing the probability of being caught and punished,
D) by advertisements against drinking and driving.

Question 24

The best way to protect a small child in an auto is

A) to let the child ride in the parent's lap,
B) to let the child ride in the back seat of the car,
C) to place the child in a special car seat next to the driver,
D) to place the child in a special car seat in the back seat of the car.

Question 25

When more teenagers in a community take driver's education, teenage auto accidents

A) increase,
B) decrease,
C) remain the same,
D) at first decrease then return to the old level.

Question 26

Seat belts

A) are very cost-effective,
B) are very cost-effective if there is a high utilization rate,
C) can be effective when combined with television ads designed to encourage seat belt use,
D) are better than air bags.

Question 27

Under no-fault auto insurance plans that are used in the United States,

A) insurers have a limited right to sue,
B) insureds cannot sue the negligent party,
C) insurance premiums are always lower than before the law was enacted,
D) insureds have a restricted right to sue negligent parties.

Question 28

The state with the highest average auto insurance premium is:

A) Alabama,
B) Indiana,
C) New Jersey,
D) Wisconsin