In the United States, auto insurance is compulsory in most states, though enforcement of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance, while in Virginia residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance. Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.

Classified

Classified information is sensitive information to which access is restricted by law or regulation to particular groups of persons. A formal security clearance is required to handle classified documents or access classified data. The clearance process requires a satisfactory background investigation. There are typically several levels of sensitivity, with differing clearance requirements. This sort of hierarchical system of secrecy is used by virtually every national government. The act of assigning the level of sensitivity to data is called data classification.

A distinction could be made between formal security classification and privacy markings such as "Commercial in confidence".

Some corporations and non-government organizations also assign sensitive information to multiple levels of protection, either from a desire to protect trade secrets, or because of laws and regulations governing various matters such as personal privacy, sealed legal proceedings and the timing of financial information releases.

The purpose of classification is ostensibly to protect information from being used to damage or endanger national security. Classification formalizes what constitutes a "state secret and accords different levels of protection based on the expected damage the information might cause in the wrong hands.

Classification levels

Although the classification systems vary from country to country, most have levels corresponding to the following British definitions (from the highest level to lowest):

Top Secret (TS)

The highest level of classification of material on a national level. Such material would cause "exceptionally grave damage to national security if made publicly available.

Secret

Such material would cause "grave damage to national security if it were publicly available.

Confidential

Such material would cause "damage or be "prejudicial to national security if publicly available.

Restricted

Such material would cause "undesirable effects if publicly available. Some countries do not have such a classification.

Unclassified

Technically not a classification level, but is used for government documents that do not have a classification listed above. Such documents can sometimes be viewed by those without security clearance.

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