learning confirmation- 4 chapters of LIF

One may not venture outside the house for fear of meeting with an accident or may not travel at all for fear of falling ill when abroad. -- what is this RISK Management Technique ?

• Risk avoidance

• Risk retention

• Risk reduction and control

• Risk financing

When a company decides to stop producing a product due to potential losses, what is this RISK Management Technique called?

• Risk avoidance

• Risk retention

• Risk reduction and control

• Risk financing

A business implements safety measures to minimize the chances of accidents in the workplace. What is this RISK Management Technique?

• Risk financing

• Risk reduction and control

• Risk retention

• Risk avoidance

Choosing to keep a certain amount of money aside to cover potential losses is an example of which RISK Management Technique?

• Risk avoidance

• Risk financing

• Risk retention

• Risk reduction and control

insurance is an example of ----- Risk Mangement Technique.

• Risk transfer

• Risk reduction and control

• Risk retention

• Risk avoidance

o divide the annual income a family would like to have, even if the bread earner was no longer alive, with the rate of interest that can be earned. This is the formula for ----

• HLV

• RISK

• PERIL

• Premium

A premium fixed such that it does not increase with age but remains constant throughout the contract period is called

• Gross Premium

• Level Premium

• Risk Premium

• Net Premium

Which of the below is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?

• Young people are mostly dependent

• Old people can afford to pay more

• Mortality is related to age

• Mortality is inversely related to age

Which among the following methods is a traditional method that can help determine the insurance needed by an individual?

• Human Economic Value

• Life Term Proposition

• Human Life Value

• Future Life Value

Who devised the concept of HLV?

• Dr. Martin Luther King

• Warren Buffet

• Prof. Hubener

• George Soros