The knockoutconditionrulediscussed at thestartof this articleisin factabusiness rule, becauseitisforcing a business constraint — to declinethe policy to a high-riskdriver.
As default risk is the primary driver of high-yield corporate bond prices, as opposed to interest rate direction, when the economy expands, the risk of high-yield corporate bonds defaulting is reduced and this is reflected in lower volatility.
Depending on what the sensors detect, the car might try to mitigate the driver's risk by cutting power to the motor or automatically stabilizing the vehicle.
It attributed the increased risk to the almost five seconds it found that the driver's eyes were off the roadway while texting, said Rich Hanowski, the director of the Center for Truck and Bus Safety at the transportation institute.