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FFPN MODULE 4 INSURANCE BASICS & PROPERTY INSURANCE QUESTIONS WITH ACTUAL SOLUTIONS!!
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FFPN MODULE 4 INSURANCE BASICS & PROPERTY INSURANCE QUESTIONS WITH ACTUAL SOLUTIONS!!
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FFPN MODULE 4 INSURANCE BASICS &PROPERTY INSURANCE QUESTIONS WITH
ACTUAL SOLUTIONS!!
The process of deciding how much and what kind of insurance to buy is called
(LO 4-1)
life insurance planning.
financial planning.
risk management.
insurance management. Answer - life insurance planning.
Life insurance is just one type of insurance; the process of deciding how much
and what kind of insurance to buy is called insurance management.
financial planning.
Financial planning involves insurance management as well as other processes,
such as investment management, tax planning, and estate planning.
risk management.
Deciding how to deal with insurable and uninsurable risk is called risk
management. Risk management is more comprehensive than insurance
management.
,(ANSWER) insurance management.
The process of deciding what kind of insurance to buy is called insurance
management. Risk management is broader than insurance management by
itself.
Liability risk is (LO 4-1)
one form of pure risk.
one form of speculative risk.
avoidable with good behavior.
only a concern for wealthy individuals. Answer - (ANSWER) one form of pure
risk.
This is just one form of pure risk.
one form of speculative risk.
Speculative risk can result in either a gain or a loss; liability risk has only
downside risk.
avoidable with good behavior.
One can be doing the right thing but still get sued. Good behavior can reduce
the possibility of being sued, but it cannot eliminate it.
only a concern for wealthy individuals.
, While liability risk is more of a concern for wealthy individuals, it is also a
concern for most anyone, since anyone can get sued.
Which one of the following is not a requirement for an insurable risk from the
insurance company's perspective? (LO 4-2)
the law of large numbers must apply
the loss must be catastrophic
the loss must be accidental
the loss must be measurable Answer - the law of large numbers must apply
This is one of the requirements for an insurable risk.
(ANSWER) the loss must be catastrophic
The loss cannot be catastrophic (for the insurance company) in order for it to
be an insurable risk.
the loss must be accidental
This is one of the requirements for an insurable risk.
the loss must be measurable
This is one of the requirements for an insurable risk.
Which one of the following is a correct statement about insurable interest? (LO
4-2)
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