Fundamental of Insurance & Risk exam questions and answers 2024

Which of the following types of families is likely to have the least need for a large amount of life insurance? A) blended family B) traditional family C) single person family D) sandwich family - ANSWERS c The human life value is defined as the A) present value of a deceased breadwinner's future gross income. B) future value of a deceased breadwinner's past earnings. C) present value of the family's share of a deceased breadwinner's future earnings. D) future value of the family's share of a deceased breadwinner's future earnings. - ANSWERS c All of the following information is needed to caclulate a person's human life value Except A) the person's average annual earnings over his or her productive lifetime. B) the person's estimated Social Security Benefits after retirement. C) the person's cost of self-maintenance. D) the number of years from the person's present age to the expected retirement age. - ANSWERS b To calculate a human life value, it is necessary to deduct certain costs from a person's average annual earnings. These costs include A) funeral costs. B) income taxes. C) investment income. D) pension benefits after retirement. - ANSWERS b