Nathan, age 35, came into your office today. He has been ac lient of yours for a long time. He has neglected his insurance portfolio up until this point and wants to complete the personal risk management process. Together you determine that his insurance objective is to “insure, in the most economical way, only those risks that have the potential of causing catastrophic financial loss.” You also identified all of the possible risk exposures. In evaluating these risks, which of the following is true?

a. Loss severity is the expected number of losses that will occur within a given period of time. a

b. Death is always catastrophic.

c. Most, if not all clients, need health insurance.

d. Perils are the proximate or actual cause of a loss that upon occurrence always leads to financial hardship.