compulsory insurance
Legally required protection
Compulsory insurance is coverage required by law rather than purchased voluntarily.
Auto liability insurance is compulsory in most U.S. states—you cannot legally drive without it.
Workers' compensation is compulsory for most employers.
The state mandates compulsory insurance for all registered vehicles.
- adverse selectionPre-contract hidden knowledge problem
- mandateFormal authoritative directive
- policyholderOwner of insurance contract
- premiumAdded cost for better
- lawBinding principle or regulation
state law · risk pool · regulation · moral hazard · claim · minimum coverage · financial responsibility · workers' compensation · penalty · statute · subsidy · legal obligation · enforcement · public policy · economic equity · underwriter · affordability · compliance
- auto insurancecollision coverage, liability coverage, comprehensive coverage, theft protection, premium
- insurancecoverage, underwriting, premium, claims, policyholder
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