Question

In what situation would insurance be most required?

a.

When the probability of an event is high, and the premium is low

b.

When the loss impact is very high, and the premium is very high

c.

When the loss impact is very high, but the probability (and premium) is very low

d.

When there is no possibility of a loss occurring

Posted under IC38 Life Insurance Agent Exam

Answer: (c).When the loss impact is very high, but the probability (and premium) is very low Explanation:Insurance is most required when the loss impact is very high, but the probability (and premium) is very low.

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Q. In what situation would insurance be most required?
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