Exam 8: Insuring Your Life

.Which of the following risk management techniques is the purchase of insurance a common form of?

Spreading risk among a large number of people is a major principle of insurance.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Deciding which people will be insured by an insurance company is a function of an [insurance agent | insurance underwriter].

The basic purpose of insurance is to protect you and your family from the results of accidental losses.

Group life insurance is often provided as a fringe benefit by employers.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -A [credit life insurance | mortgage life insurance] is sold in conjunction with installment loans.

Whole life insurance is designed to provide:

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Credit life insurance is generally considered to be a [good | poor] life insurance buy.

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy he will receive the cash value.His plan is a _____ policy.

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

Underwriters can predict whether or not you will suffer a loss this year.

Life insurance policies with small face amounts where the premium may be collected weekly by agents is termed as a(n):

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -The [policy owner | insurance company] makes the investment decisions with variable life insurance.