Final answer:
d. Will come into force onlyWhen the insured is not at fault
Uninsured Motorist Coverage comes into effect when the insured is not at fault. It is not provided by the government, not offered by all insurers, and varies between jurisdictions. Adverse selection and dealing with imperfect information are key concepts in understanding how insurance works.
Step-by-step explanation:
The true statement about Uninsured Motorist Coverage is that it will come into force only when the insured is not at fault. This type of coverage is designed to protect you in the event that you are involved in an accident with a driver who does not have insurance or is underinsured. It is not identical in all provinces or offered by all insurers, and it is certainly not provided by the government in all jurisdictions.
In the context of health insurance, the individual mandate provision of the 2010 U.S. healthcare reform, often referred to as Obamacare, requires everyone to have insurance or pay a penalty. This was intended to ensure that all Americans have access to affordable health insurance and is unrelated to uninsured motorist coverage. All insurance involves dealing with imperfect information because predicting future events with certainty is not possible, and estimating the risk to an individual is complex.
Government interventions in insurance markets sometimes require people to buy certain kinds of insurance. For example, most states require car owners to have auto insurance. The goal is to avoid adverse selection and to enable insurance companies to set prices based on a market average, though companies may still try to avoid selling insurance to high-risk individuals.