Financial responsibility law FRL

{
  "id": "MLC-T-INS-001513",
  "term": "Financial responsibility law FRL",
  "field": "Insurance and risk management",
  "definition": "A state statute requiring drivers to demonstrate the ability to pay for damages or injuries they cause in an automobile accident. These laws mandate that motorists carry a minimum amount of liability insurance or provide other proof of financial capability. Failure to comply with a financial responsibility law can result in penalties such as license suspension or vehicle registration revocation.",
  "url": "https://mlchart.com/terminology/insurance/financial-responsibility-law-frl/"
}