Long description

The following list provides the information in the diagram of an example of a generalized automobile insurance plan. Each bullet is a new section of the diagram.

  • State’s residual high-risk drivers

    • 5 percent

      • Insurer A: writes a 5 percent of the state’s auto insurance.

        • Issues a policy

        • Performs all service work

        • Pay claims

    • 4 percent

      • Insurer B: writes 4 percent of the state’s auto insurance.

        • Issues a policy

        • Performs all service work

        • Pay claims

    • 7 percent

      • Insurer C: writes 7 percent of the state’s auto insurance.

        • Issues a policy

        • Performs all service work

        • Pay claims

Source: Adapted from Karen L. Hamilton and Cheryl L. Ferguson, Personal Risk Management and Property-Liability Insurance, first edition (Malvern, Pennsylvania: ...

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