LOMA 281 Meeting Customer Needs with Insurance Annuities Questi... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Meeting%20
LOMA 281: Meeting Customer Needs with Insurance Annuities
Questions And Correct Answers 2024/2025 (GRADED A)
1. 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.
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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: A &C
2. Risk: The possibility of an unexpected result. This could be a gain or a loss.
3. Speculative Risk: A risk that involves three possible outcomes: loss, gain, or no
change.
4. Pure Risk: A risk that involves no possibility of gain; either a loss occurs or no
loss occurs.
5. Insurance companies won't insure all types of risks. Which risks do you
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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: A.
6. Steve is nervous about losing money in the stock market, so he doesn't
invest in stocks.
a. Avoiding Risk
b. Controlling Risk
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c. Accpeting Risk
d. Transferring Risk: A.
7. 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
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