LOMA 281: Meeting Customer Needs with Insurance Annuities Questions & Answers(GRADED A)
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LOMA 281: Meeting Customer Needs with Insurance A
Institution
LOMA 281: Meeting Customer Needs With Insurance A
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 ris...
LOMA 281: Meeting Customer
Needs with Insurance
Annuities Questions &
Answers(GRADED A)
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 - ANSWER A & C
Risk - ANSWER The possibility of an unexpected result. This could be a gain or a loss.
Speculative Risk - ANSWER A risk that involves three possible outcomes: loss, gain, or no change.
Pure Risk - ANSWER 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 - ANSWER 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 - ANSWER A.
Mark uses a laptop computer in his business. If he loses the laptop or accidentally damages it, Mark
will have to purchase another laptop or pay to have it repaired.
a. avoiding risk
b. controlling risk
c. accepting risk
d. transferring risk - ANSWER C.
To reduce the likelihood of fire destroying her convenience store, Rebecca installed smoke detectors
and a sprinkler system.
a. avoiding risk
b. controlling risk
c. accepting risk
d. transferring risk - ANSWER B.
Conrad purchased a disability income insurance policy to provide for his family in case he becomes
sick or injured and can't work.
, a. avoiding risk
b. controlling risk
c. accepting risk
d. transferring risk - ANSWER D.
insurance company - ANSWER A company that accepts risk and makes a promise to pay a policy
benefit if the covered loss does occur.
policy benefit - ANSWER The amount of money an insurer promises to pay if a covered loss occurs.
premium - ANSWER A specified amount of money an insurer charges in exchange for agreeing to pay
a policy benefit when a specific loss occurs.
life insurance - ANSWER Insurance that pays a benefit upon the death of a named person.
Risk Pooling - ANSWER people who face the risk of a particular loss - like the financial loss associated
with death - transfer this risk to an insurance company.
annuity - ANSWER A financial product under which an insurer promises to make a series of periodic
payments to a named person or entity in exchange for a premium or series of premiums.
The person or party the policy owner names to receive the life insurance policy benefit.
a. applicant
b. beneficiary
c. insured
d. policy owner
e. third-party policy - ANSWER B. beneficiary
A policy purchased by one person or entity on the life of another person.
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