Question

Q7: Uninsured motorists coverage is another approach to the problem of uninsured drivers. a. Explain the advantages of uninsured motorists coverage in meeting the problem of uninsured drivers. b. Explain the defects of uninsured motorists coverage as a technique for compensating people who are injured by uninsured drivers. Q8: Who are the people included in the persons insured under Section I of the Homeowners 3 policy?

Answer 1

Ans:7)

Ans.A)

uninsured motorists coverage is one of the approaches of compensating the injured auto accident victims. Under thise coverage, the injured person agrees to pay accident victims who has bodily injured by uninsured motorists or negligent driver whoes insurer is insolvent. The main advantage of motorties coverage.

1. Claims settlement is faster and more efficient than tort liability system.

2. A driver who is not at fault can full compensation from the insure in event of crush.

3. Better financing- some applicants require uninsured driver coverage as part of the insurance needed to protect an investment in a vehicle that may have lien on it during a loan term.

4. Motorists are protected against the insured drivers by having proper insurance coverage.

Ans.B)  

Uninsured motorist coverage also has some defects as a method of compensating automobile accident victims. These include: inadequate limits, the insured person must establish that the uninsured motorist is legally liable, and in some states, property damageis not covered under uninsured motorist coverage.