Final answer:
To be licensed under class B or C, an individual must submit evidence of comprehensive general liability insurance coverage with specific dollar amounts for bodily injury liability and property damage liability. For a group of 100 drivers, the total insurance premium collected can cover the costs of accidents that occur. A simplified example demonstrates how different risk levels within a group can contribute to the total damage incurred.
Step-by-step explanation:
Under class B or C licensing, an individual must submit evidence of comprehensive general liability insurance coverage. The coverage must be not less than a certain amount of dollars for each person and each occurrence for bodily injury liability, and a certain amount of dollars for property damage liability. The specific dollar amounts required will depend on the specific regulations or guidelines set by the licensing authority.
For example, if we consider a group of 100 drivers, and each driver pays a $1,860 premium per year, the insurance company will collect a total of $186,000. This amount is needed to cover the costs of accidents that occur within this group of drivers.
In another simplified example, imagine a group of 100 drivers divided into three categories based on risk. In a given year, 60 drivers have minor accidents costing $100 each, 30 drivers have medium-sized accidents costing an average of $1,000 each, and 10 drivers have major accidents costing $15,000 each. In this scenario, the total damage incurred by accidents in the group of 100 drivers is $186,000.