Multiple Choice
Which of the following statements regarding risk avoidance is true?
A) Risk avoidance is any activity that helps evade an act that creates a risk.
B) Risk avoidance is any activity that increases the chance that a loss will occur.
C) Risk avoidance is any activity that lessens the severity of loss once it occurs.
D) Risk avoidance is an act that reduces the probability that a loss will occur.
E) Risk avoidance is an effective way to handle small exposures to loss when insurance is too expensive.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Insurance companies use _ to determine whom
Q16: A nonforfeiture option guarantees that a policyholder
Q19: A life insurance agent who takes his
Q20: _ is any activity that lessens the severity
Q21: The preferred technique for determining how much
Q22: While using the needs analysis approach to
Q65: The availability of group coverage through employee
Q67: The need for life insurance increases with
Q68: Only one agent should be consulted for
Q69: Insurance companies use actuarial data to measure