Final answer:
It is true that POV owners must maintain the minimum liability insurance required by German law, which ensures insurance contributions cover claims, company costs, and profits.
Step-by-step explanation:
The statement that Personally Owned Vehicle (POV) owners are required to maintain the minimum liability insurance coverage required by German law is true. Individuals in Germany must ensure they have proper insurance coverage for their vehicles as it is mandated by law.
This legal requirement aligns with a fundamental law of insurance, which states that the average individual's contributions to an insurance policy over time need to be sufficient to cover the average person's claims, the operational costs of running the insurance company, and generate a margin for the company's profits.
These principles ensure that insurance companies can maintain financial stability and provide services to their policyholders, especially considering complicating factors such as investment income on reserves, administrative costs, and varying risk groups.