| Question 1. 1. The blackout period refers to the period of time immediately following the death of the breadwinner. (Points : 0.1) |
[removed] True
[removed] False |
Question 2. 2. Long-term care insurance pays benefits when the insured is unable to perform at least three of the activ-
ities of daily living (ADL). (Points : 0.1) |
[removed] True
[removed] False |
| Question 3. 3. Term life insurance is considered “pure insurance.” (Points : 0.1) |
[removed] True
[removed] False |
Question 4. 4. Personal risk management is a systematic process of identifying, evaluating, and managing pure risk
exposures faced by an individual. (Points : 0.1) |
[removed] True
[removed] False |
Question 5. 5. Pure risk is the chance of a loss or no loss occurring, but with pure risk there is no chance of experienc-
ing a gain. (Points : 0.1) |
[removed] True
[removed] False |
| Question 6. 6. With pure risk there is an equal chance of experiencing a gain or loss. (Points : 0.1) |
[removed] True
[removed] False |
Question 7. 7. Loss severity is the expected number of losses that will occur within a given period of time while loss
frequency refers to the potential size or financial damage of a loss. (Points : 0.1) |
[removed] True
[removed] False |
Question 8. 8. As a general rule, everyone needs life insurance sufficient to replace future income, regardless of whether
they have dependents. (Points : 0.1) |
[removed] True
[removed] False |
| Question 9. 9. A risk that is as big as or bigger than untimely death is early disability. (Points : 0.1) |
[removed] True
[removed] False |
Question 10. 10. An example of moral hazard is not locking the doors of your home when you are out of town for two
weeks because you have insurance, while an example of morale hazard is burning down your house to collect insurance. (Points : 0.1) |
[removed] True
[removed] False |
|
