Final answer:
The fine for not having mandatory liability insurance has varied by jurisdiction and over time, with changes such as the removal of the health insurance individual mandate penalty. In automobile insurance, a comparable situation shows that premiums collected from drivers are used to cover the estimated costs of accidents.
Step-by-step explanation:
The first condition, for not having mandatory liability insurance, originally carried a fine which varied based on jurisdiction and legislative specifics. However, in the context of health insurance, the public's initial frustration with the Affordable Care Act (ACA) came from the act's mandate that individuals purchase health insurance or pay a fine. This was seen as a measure to create a large enough pool of insured people to reduce the overall cost of coverage. The individual mandate penalty under the ACA was later reduced to $0 after the end of 2018, effectively removing the financial penalty for not having health insurance.
A similar scenario in automobile insurance shows that if each of the 100 drivers pays a premium, in this case $1,860 annually, the insurance company is expected to collect $186,000. This amount correlates with the estimated costs that are needed to cover the accidents that occur within that group of drivers. This distribution of risk and cost is fundamental to the principle of insurance.