Property and Casualty Principles Review Test questions with correct answers

A - protect the lender's financial interest in the car in the event it is damaged or destroyed CORRECT ANSWER In order to get a loan to buy a car, John had to obtain insurance on the car. The purpose of the insurance requirement is to A - protect the lender's financial interest in the car in the event it is damaged or destroyed B - create an additional source of revenue for the lender C - include the insurance company as a cosigner on the loan in case John defaults on his payments D - prove to the lender that John has a sense of responsibility toward his obligations B - Contributes to the nation's economic well-being CORRECT ANSWER The insurance industry employs millions of people and pays billions in tax revenue to the federal and statement government. These are 2 examples of how the insurance industry A - helps prevent losses