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An Insurance Company Is Likely to Believe That Having a Major

Question 56

Multiple Choice

An insurance company is likely to believe that having a major accident is a signal of being a _____________, and thus try to _________________.


A) moral hazard; deny this driver further coverage
B) high-risk driver; raise this driver's insurance premiums
C) high-risk driver; compel the driver to take defensive driving courses
D) medium-risk driver; reduce the amount of this driver's coverage

Correct Answer:

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