The course: Risk Management & Insurance.

1. Henry is driving Lisa's automobile. He runs a stop sign and causes an accident. Henry and Lisa both have a personal automobile insurance policy. How will the liability coverage between these two policies most likely be coordinated?

A. Henry's and Lisa's policies pay equal shares. B. Henry's policy is primary, while Lisa's policy is excess. C. Lisa's policy is primary, while Henry's policy is excess. D. Only Henry's policy is obligated to provide liability coverage since he is the at-fault driver.

2. Which of the following statements is true of compulsory automobile insurance?

A. It enjoys strong enforcement. B. It's unconstitutional. C. It has a regressive impact on the distribution of income. D. It's similar to a flat or sales tax in its impact on policyholders.