Life Insurance - Chapter 1 Practice Questions With 100% Correct Answers 2024

Life Insurance - Chapter 1 Practice Questions With 100% Correct Answers 2024 On average, 65 year-old males will live to almost age 84. (Reference: Chapter 1) - answerJoe, age 65 looked at a mortality table online. What does it mean when he reads that a male age 65 has a life expectancy of 18.82? Generally, refers to all the assets belonging to a person, usually in reference to a person's total assets at the time of death. (Reference: Chapter 1) - answerWhat is an estate? An actuarial table providing mortality projections for the population at large offering both mortality rates and life expectancy projections. (Reference: Chapter 1) - answerWhat is a mortality table? Avoiding the risk of loss from a given activity by refusing to participate in that activity. (Reference: Chapter 1) - answerWhat is risk avoidance? The process of minimizing the potential financial impact of risks through risk avoidance, risk reduction, risk retention, and risk transfer. (Reference: Chapter 1) - answerWhat is risk management? Taking steps to minimize the frequency or severity of loss from a given risk. (Reference: Chapter 1) - answerWhat is risk reduction? Personally assuming costs associated with a given risk of loss, rather than transferring it to a third party. (Reference: Chapter 1) - answerWhat is risk retention? Shifting the cost of loss due to risk to a third party