A state law that requires individuals who have been involved in an auto accident or who have been convicted for certain vehicle-related offenses to demonstrate the ability to pay liability claims up to a specified dollar amount is called a(n)

Question

Quizplus · Accepted Answer

A state law that requires individuals to demonstrate the ability to pay liability claims up to a specified dollar amount is called a financial responsibility law. Compulsory insurance law requires drivers to have a certain amount of insurance coverage, while unsatisfied judgment fund law provides funds for individuals who are unable to collect payment from an uninsured or underinsured driver. "No pay, no play" law prohibits uninsured drivers from receiving compensation for non-economic damages in an accident.

A State Law That Requires Individuals Who Have Been Involved