Financial Responsibility Laws
Definition
- Laws that require an individual or entity to be able to pay damages if a claim is filed. Commonly used in conjunction with automotive insurance, financial responsibility laws do not necessarily require that an individual have insurance coverage, but rather that the individual has the financial means to pay a potential claim.
Synonyms
financial obligation laws, culpability laws, financial liability laws, financial accountability laws
Related Terms and Acronyms
- Collision Insurance — Definition,
- Auto insurance that provides coverage for damages to the policyholder's vehicle in the event that the policyholder is at fault in a traffic collision.
- Comprehensive Insurance — Definition,
- Auto insurance that covers damages not resulting from a collision, and for vehicle theft.
- Injunction — Definition,
- A court order that prohibits a party from taking a specific course of action.
- Self Insurance — Definition,
- Setting aside money or assets for a potential future loss.
- Specific Performance — Definition,
- A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
- Standard Automotive Insurance — Definition,
- Auto insurance that covers those with average driving records.
- Underinsured Motorist Coverage — Definition,
- Auto insurance that covers damages when the other driver in a collision is at fault but does not have sufficient insurance coverage.
- Uninsured Motorist Coverage — Definition,
- Auto insurance that covers collision damages caused by a driver without auto insurance.
- Unisex Legislation — Definition,
- Laws that prevent insurers from using gender as a factor when calculating premiums.
