An Insurance Company Is Likely to Believe That Having a Major

Multiple Choice

An insurance company is likely to believe that having a major accident is a signal of being a _____________, and thus try to _________________.

A) moral hazard; deny this driver further coverage
B) high-risk driver; raise this driver's insurance premiums
C) high-risk driver; compel the driver to take defensive driving courses
D) medium-risk driver; reduce the amount of this driver's coverage