CPCU 553 Assignment 2 with 100 % Correct Answers | Verified & Updated

CPCU 553 Assignment 2 with 100 % Correct Answers | Verified & Updated Financial responsibility laws - Answer ️️ -Laws enacted to ensure that motorists have the financial ability to pay for any property damage or bodily injury they might cause as a result of driving or owning an auto. Compulsory auto insurance law - Answer ️️ -Law that requires the owners or operators of automobiles to carry automobile liability insurance at least equal to certain minimum limits before the vehicle can be licensed or registered. First party - Answer ️️ -The insured in an insurance contract. Unsatisfied judgment fund - Answer ️️ -A fund designed to provide a source of recovery for victims of motor vehicle accidents when an at-fault motorist is unable to pay any judgment. Uninsured motorists (UM) coverage - Answer ️️ -Coverage that provides a source of recovery for occupants of a covered auto or for qualifying pedestrians who are injured in an accident caused by an at-fault motorist who does not have the state minimum liability insurance or by a hit-and-run driver. Underinsured motorists (UIM) coverage - Answer ️️ -Coverage that applies when a negligent driver has liability insurance at the time of the accident but has limits lower than those of the injured person's coverage. No-fault automobile insurance - Answer ️️ -Insurance that covers automobile accident victims on a first-party basis, allowing them to collect damages from their own insurers regardless of who was at fault