Final answer:
The question doesn't specify the correct answer for minimum liability insurance due to lack of context, but it provides an opportunity to explain how insurance premiums work. Through an example of 100 drivers, it's clear that collected premiums must cover claims, costs, and profits for an insurance company. The fundamental law of insurance ensures payments cover all these aspects.
Step-by-step explanation:
The question about the minimum amount of liability insurance required for active registrants doesn't provide enough context to determine a specific answer, as requirements can vary by jurisdiction, profession, and other factors. However, using the provided information on how automobile insurance premiums work, we can delve into the concept of insurance and the necessity for sufficient coverage to protect against claims. It's highlighted that in insurance, the premiums collected from the insured group must cover the various costs associated with claims as well as the operating expenses of the insurance company, while also allowing for profits.
A simplified example used to illustrate how automobile insurance premiums are determined involves 100 drivers in an insurance pool. These drivers may fall into low-risk, medium-risk, or high-risk categories, and because it's not possible to individually predict their risk at the start of the year, a common premium is charged. If the total damages from the group amount to $186,000 due to accidents, and each driver pays a premium of $1,860 annually, the collected premiums will be enough to cover the total cost of the damages incurred by the group.
This example underlines the fundamental law of insurance: an individual's premiums over time must cover claims, operational costs, and contribute to the insurance company's profit margins.