1) A restaurant customer typically has no insurable interest in the restaurant, while the owner does.

True

False

2) Don owned a $1 million life insurance policy on his own life. In 2013, he transferred ownership of the policy to his only son, who was the beneficiary of the policy. If Don dies in 2015, the proceeds of the life insurance policy will not be included in Dons estate.

True

False

3)Homeowners must purchase separate policies in addition to the homeowner policy to cover additional perils such as flood and earthquake.

True

False

4)Regarding life insurance, which of the following is the amount of funds required to fund reserves needed to pay death benefits?

Mortality Costs

Investment Performance

Term Insurance Element

Administrative Costs

5)Which of the following life insurance is the traditional cash value policy with level premium payments designed to remain in force over the entire life of the insured?

Universal Life Insurance
		Whole Life Insurance
		Survivorship Life Insurance
		Variable Life Insurance 6)Describe the common risk management techniques. 7)Explain the concept of indemnity. 8)Explain what is meant by actual cash value. 9)Explain the concept of insurable interest. 10)How is negligence defined for liability insurance purposes?