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LOMA 281 Module 1 Lesson 1 well answered to pass
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LOMA 281 Module 1 Lesson 1 well answered to pass
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LOMA 281 Module 1 Lesson 1Assume you are 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 amount of
the benefit payable when the insured person dies.
D. Most life insurance policies are issued at substandard premium rates. - correct answer ✔✔A and C
Risk - correct answer ✔✔The possibility of an unexpected result; this could be a gain or a loss.
Speculative Risk - correct answer ✔✔Can result in a loss, gain, or no change.
Pure Risk - correct answer ✔✔Involve either a loss or no loss. There is no possibility of a gain.
Insurance companies won't insure all types of risks. Which risks do you think are insurable?
A. Only pure risks
B. Only speculative risks
C. Both pure and speculative risks
D. Neither pure or speculative risks - correct answer ✔✔A.
Select the management technique that matches the example.
Steve is nervous about losing money in the stock market, so he doesn't invest in stocks.
A. Avoiding risk
B. Controlling risk
, C. Accepting risk
D. Transferring risk - correct 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 - correct 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 - correct answer ✔✔
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 - correct answer ✔✔D.
Insurance Company - correct answer ✔✔A company that accepts risk and makes a promise to pay policy
benefit if the covered loss does occur.
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