Question

What is the primary difference in risk between general insurance and life insurance?

a.

General insurance deals with risks that are certain to happen, while life insurance covers uncertain risks.

b.

General insurance covers uncertain risks, while life insurance deals with risks that are certain to happen.

c.

General insurance policies have fixed premiums, while life insurance policies have variable premiums.

d.

General insurance policies are short-term, while life insurance policies are long-term.

Posted under L01 What Life Insurance Involves IC38 Life Insurance Agent Exam

Answer: (a).General insurance deals with risks that are certain to happen, while life insurance covers uncertain risks. Explanation:The primary difference in risk between general insurance and life insurance is that general insurance deals with risks that are certain to happen, such as accidents or property damage, while life insurance covers uncertain risks, specifically the risk of premature death.

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Q. What is the primary difference in risk between general insurance and life insurance?
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