Abstract
An alternative system for the distribution of automobile liability insurance is proposed. The system is based upon directly linking insurance premiums to measures of an individual 's risk through a two-part pricing system based on ex-ante and ex-post fees and upon collecting these premiums utilizing existing mechanisms in the public sector. The proposed method completely alters the present method of obtaining policyowners. As near universal coverage would occur under this alternative, certain structural changes in the automobile liability insurance industry may result. These changes, as well as the advantages and limitations of this alternative system, are discussed.
Published Version
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