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Risk week 9 HW
1. All states have financial responsibility or compulsory insurance laws that require motorists to
carry at least minimum amounts of auto liability insurance.
a. Does a financial responsibility law or compulsory insurance law guarantee that injured auto
accident victims will be adequately compensated for their injuries? Explain your answer.
Ans: Although financial responsibility law and compulsory insurance law were made to
protect victim from misbehave driver, still it is not guaranteed that all victim will be covered due
to several reasons: 1. the driver could be uninsured, which means that both parties will not be
covered in an accident. 2. the insurance amount is not going to ensure fully cover the damage
made to victim. 3. if the judgment cannot be paid due to financial situation of the driver, the victim
are not able to get fully covered. 4. the law do not directly reduce the rate of accident and only
become effective after the accident already done.
b. How effective are compulsory insurance laws in reducing the problem of uninsured drivers?
Ans: the great thing about compulsory insurance law is it required a minimum insurance
amount before you registered or licensed, which means it gives a minimum protection to
pedestrian.
2. Uninsured motorists coverage is another approach to the problem of uninsured drivers.
a. Explain the advantages of uninsured motorists coverage in meeting the problem of uninsured
drivers.
Ans: Advantage- claim settlement, this could benefit motorists from time and efficiency
Protect driver from uninsured drivers, which directly help driver avoid the
