Scott had trouble obtaining auto insurance.After three companies refused to insure him,he called the state insurance department.A representative suggested he obtain coverage through Last Chance Insurance Company because "that's all they insure-high-risk drivers." Scott contacted Last Chance.He was not refused coverage;however,the premium Scott was required to pay was three times greater than the average premium in the market.Last Chance Insurance Company is a(n)
A)reinsurance facility.
B)automobile insurance plan.
C)specialty auto insurer.
D)joint underwriting association.

Question

Quizplus · Accepted Answer

Last Chance Insurance Company is a specialty auto insurer that caters to high-risk drivers who have been refused coverage by other insurers. The fact that they only insure high-risk drivers is what makes them a specialty insurer.

Scott Had Trouble Obtaining Auto Insurance