Question

When should insurance be recommended for a risk?

a.

Whenever the customer is willing to pay for it

b.

If the agent believes insurance is always the best solution

c.

When the premium payments are high compared to the potential loss

d.

If the loss consequences of the risk are likely to be severe

Posted under IC38 Life Insurance Agent Exam

Answer: (d).If the loss consequences of the risk are likely to be severe Explanation:Insurance should be recommended for a risk when the loss consequences of that risk are likely to be severe.

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