A propertyeasualty insurance contract in which all losses are covered except those specifically excladed in the contract is called ain) 14 A. B. C. D. All risks" or open-perils policy Named perils policy Anything goes policy Comprehensive policy 15. Which of the following is not a valid reason for having exclusions writen into certain insurance policies? A. B. Moral hazard or difficulty in determining and measuring the amount of loss Coverage can be better provided by other contracts Coverage is not needed for the typical insured (ie coverage for an airplane C. under a homeowners policy) D. Coverage would prevent the insurance company from making moneyy Deductibles are often used by an insurance company to eliminate small claims and/or to reduce premiums for the consumer. Doing so, however, requires which of the following risk control methods on the part of the consumer? 16. A. . Avoidance Active Retention Loss Prevention Noninsurance Transfer C. D. The following statement best describes the concept of premature death: 17 The death of a family member with outstanding unfulfilled financial obligations, regardless of when it occurs. The death of a child before reaching the age of 21. The sudden death of a loved one. The death of a worker prior to reaching normal retirement age. A. . . D. Term life insurance: 18. Has a cash value that is equal to the total of premiums paid Is best suited for individuals who have a temporary need for insurance Is primarily used to pay final expenses for older insureds Should never be purchased by anyone. A. . . D. A type of life insurance which has cash values that depend on the investment results of a separ account is: 9. Universal Life Adjustable Life Ordinary Life Variable Life . . . D. Which of the following is not a commonly available settlement option in a life insurance policy? A. Convertibility option Cash or lump sum option Interest option Fixed Period option B