State Farm Auto Insurance Practice Test

What does the 'A' exposure level indicate in NECHO?

1. Frequent operator

2. Accident only

3. No exposure

4. Employee, infrequent operator

The correct answer is: Accident only

The 'A' exposure level in NECHO indicates "Accident only." This classification is significant as it denotes that the individual or entity identified as 'A' is considered in the context of insurance evaluations particularly focusing on incidents that have resulted in accidents, irrespective of the frequency of other driving activities. Such categorization facilitates insurance providers in understanding risk levels and setting appropriate premiums based on accident history. The other choices do not align with the meaning of the 'A' exposure level. For instance, frequent operator relates to individuals showing a higher engagement level in driving activities, while no exposure suggests a complete absence of risk, and employee, infrequent operator indicates individuals who drive but not on a regular basis. Each of these alternatives conveys a distinct context that does not pertain to the specific focus on accidents characterized by 'A.'