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INSR 310 EXAM 2 FERGUSON
QUESTIONS WITH CORRECT
SOLUTIONS
Economic in nature - correct-answer - Primary Perils
Dying BEFORE you complete your goals; mortality - correct-answer - Premature
Death
Death is not a peril, it is an? - correct-answer - Uncertainty
Getting hurt, health gets affected, and no longer being able to work; morbidity -
correct-answer - Premature Health
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A type of unemployment where for example, working on assembly line and
everyone stops buying cars, so therefore you have no job - correct-answer -
Involuntary
A type of unemployment where you work hard and then decide to retire - correct-
answer - Voluntary
An economic base on financial flexibility/supplement and future charitable
Intent/bequests - correct-answer - Individual purposes
An economic base on earnings protection/replacements and asset
prevention/transfer - correct-answer - Family purposes
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An economic base on business continuation needs and employee benefit plans -
correct-answer - Business purposes
Different rules of life - correct-answer - Rules of Thumb
Figuring out what people need - correct-answer - Needs Analysis
Medical expenses, funeral/burial costs, personal obligations/debts/unpaid
pledges, estate administration costs/fees (executor, appraisal, legal, court) and
taxes (property, estate, inheritance, income) - correct-answer - Terminal Needs
(Clean-up fund)
Capital budgeting that is applied to human life - correct-answer - "Capitalization of
Income" Approach
INSR 310 EXAM 2 FERGUSON
QUESTIONS WITH CORRECT
SOLUTIONS
Economic in nature - correct-answer - Primary Perils
Dying BEFORE you complete your goals; mortality - correct-answer - Premature
Death
Death is not a peril, it is an? - correct-answer - Uncertainty
Getting hurt, health gets affected, and no longer being able to work; morbidity -
correct-answer - Premature Health
,2|Page
A type of unemployment where for example, working on assembly line and
everyone stops buying cars, so therefore you have no job - correct-answer -
Involuntary
A type of unemployment where you work hard and then decide to retire - correct-
answer - Voluntary
An economic base on financial flexibility/supplement and future charitable
Intent/bequests - correct-answer - Individual purposes
An economic base on earnings protection/replacements and asset
prevention/transfer - correct-answer - Family purposes
, 3|Page
An economic base on business continuation needs and employee benefit plans -
correct-answer - Business purposes
Different rules of life - correct-answer - Rules of Thumb
Figuring out what people need - correct-answer - Needs Analysis
Medical expenses, funeral/burial costs, personal obligations/debts/unpaid
pledges, estate administration costs/fees (executor, appraisal, legal, court) and
taxes (property, estate, inheritance, income) - correct-answer - Terminal Needs
(Clean-up fund)
Capital budgeting that is applied to human life - correct-answer - "Capitalization of
Income" Approach
