LOMA 281: Meeting Customer Needs with Insurance Annuities Questions with 100% Correct Answers | Verified

Assume you're applying for a life insurance policy. During his presentation, the insurance agent makes the following statements. Are they all true? (Select all that apply.) a. People buy insurance to reduce the financial risk they face but not every type of risk is insurable. b. both pure risks and speculative risks are insurable. c. most life insurance policies are valued contracts, which state at the time of policy issue the time amount of the benefit payable when the insured person dies. d. most life insurance policies are issued at substandard premium rates - A & C Risk - The possibility of an unexpected result. This could be a gain or a loss. Speculative Risk - A risk that involves three possible outcomes: loss, gain, or no change. Pure Risk - A risk that involves no possibility of gain; either a loss occurs or no loss occurs. Insurance companies won't insure all types of risks. Which risks do you think are insurable? Choose the correct answer. a. only pure risks b. only speculative risks c. both pure risks and speculative risks d. Neither pure risk nor speculative risk - A.Steve is nervous about losing money in the stock market, so he doesn't invest in stocks. a. Avoiding Risk b. Controlling Risk c. Accpeting Risk d. Transferring Risk - A