Question

Which of the following statements about Autoplan financing is false? a) A driver can opt for equal monthly payments on a six-month or twelve-month policy. b) A driver can opt for equal quarterly payments on a twelve-month policy. c) A regular payment date that falls on a weekend or a statutory holiday is moved to the next business day. d) A new customer with no history of payments to ICBC may start with the any payment option.

Answer 1

The false statement about Autoplan financing is option (d), which suggests a new customer with no payment history to ICBC can choose any payment option, whereas they may need a payment history before accessing such choices.

Step-by-step explanation:

The student's question pertains to identifying the false statement regarding Autoplan financing, which is an insurance payment program. After reviewing the options provided to the student, the statement that is false is option (d), which claims that 'A new customer with no history of payments to ICBC may start with any payment option.' Typically, insurance companies may require a track record of payments or even a down payment before providing flexible options for new customers who do not yet have a payment history with the insurer.

This differs from the more straightforward financial mathematics involved in calculating loan repayments or leasing costs for vehicles, where the principal, interest rate, and payment frequency are taken into account, without the need to establish a trust or payment history first.

Hence, the answer is option d.