Life and Health Insurance Exam 1 questions with correct answers

UNIT 1: The term used to describe the individual who is covered by the insurance is A. insurer B. insured C. policyowner D. risk ans B Which of the following is a risk? A. A car may need to have new brakes installed after several years of regular driving. B. An individual may need medical attention after slipping on the ice and falling. C. Both are examples of risk. D. Neither is an example of risk. ans B The estimation of future losses is more accurate when information is from A. a small select group B. a large group C. a medium-sized group D. any size group; group size does not matter ans A The application of the law of large numbers enables insurers to A. estimate the future losses of a class or group