What does Financial Responsibility Law mean? Read on to discover the definition & meaning of the term Financial Responsibility Law - to help you better understand the language used in insurance policies.
Financial Responsibility Law
The financial responsibility law requires people to prove that they have the financial means to cover potential damages for losses related to a particular risk. Proof of financial means is often required for uninsured drivers in places where auto insurance is not required by law. This is because auto accidents can result in significant losses, and if the person at fault can't cover these losses, then the injured party could experience a major financial setback.
We hope the you have a better understanding of the meaning of Financial Responsibility Law.