the emerson first national bank is lending you money to buy a new car. the loan agreement will probably state that you must carry insurance.
a. liability
b. collision
c. no-fault
d. medical
2007-01-28 10:52:29 · 7 answers · asked by Lynn D 1 in Science & Mathematics ➔ Mathematics
Liability. You must be able to pay for damage you do to others.
2007-01-28 10:58:30 · answer #1 · answered by ironduke8159 7 · 0⤊ 2⤋
The bank wants to make sure they get their money back. The collateral on the loan is the car itself. That means if you stop paying on the loan, the bank will come and take the car then sell it to get their money. If there is no car to take, they are in trouble. That could happen if you smash the car up and there is nothing left.
Collision insurance protects this case. If you smash the car and are at fault, the insurance company pays for the car.
2007-01-28 11:01:08 · answer #2 · answered by grand_nanny 5 · 0⤊ 0⤋
None of the above. A loan requires FULL COVERAGE on a car.
But if I had to choose from the list above I would say B - Collision because that covers the car for which the loan is for.
2007-01-28 10:59:27 · answer #3 · answered by starfire 4 · 1⤊ 0⤋
E All of the Above
Actually, it's likely to be d: they only care that you are well enough to pay off the loan.
2007-01-28 10:59:31 · answer #4 · answered by ithinkiknow 1 · 0⤊ 2⤋
B. collision. the lender wants to protect their interest in the value of the car.
2007-01-28 11:07:03 · answer #5 · answered by jaybee 4 · 1⤊ 0⤋
liability
2007-01-28 11:00:36 · answer #6 · answered by Field Daisy 2 · 0⤊ 2⤋
i'd say b, but I am not sure what c is.
2007-01-28 10:58:08 · answer #7 · answered by Anonymous · 1⤊ 0⤋