Question

which of the following practices does not lead to a higher car insurance rate?
a crash ones car
b. participate in a defensive driving course
c. purchase a newer model car
d. receive a speeding ticket

which of the following is the term for a person who relies on someone else financially?
a beneficiary
b dependent
c insurer
d policyholder

Explanation:

First Question (Car Insurance Rates)

• Option a: Crashing a car shows higher risk, so insurance rates increase.
• Option b: Defensive driving courses teach safe driving, reducing risk, so insurers may lower rates (not increase).
• Option c: Newer model cars may have higher repair costs or be more attractive to thieves, increasing rates.
• Option d: A speeding ticket indicates risky driving, leading to higher rates.

• Option a: Beneficiary is someone who receives benefits (e.g., from insurance), not reliant financially on others.
• Option b: Dependent is defined as a person who relies on someone else (e.g., a parent) for financial support.
• Option c: Insurer is the company providing insurance, not a dependent.
• Option d: Policyholder is the one who holds the insurance policy, not reliant on others financially.

Answer:

b. Participate in a defensive driving course

Second Question (Financial Dependency Term)