For someone earning about $53,400 per year, social security benefits will replace about percent of their pre-retirement income. (a) 15 (b) 72 (c) 24 (d) 42 Without insurance individuals would have to do all of the following except (a) accumulate a reserve fund for emergencies. (b) keep reserve funds in highly liquid low-risk investment. (c) invest reserves in short-term assets. (d) depend on an insurance company to help them out in an emergency. Insurance companies battle the adverse selection problem through (a) risk-based premiums. (b) restrictive provisions (c) cancellation of insurance. (d) deductibles Insurance companies battle moral hazard problem through (a) risk-based premiums. (b) coinsurance. (c) screening customers. (d) All three of these are used to reduce moral hazard. A person who has the responsibility of accepting or rejecting the issuance of a policy is an (a) independent agent. (b) underwriter (c) exclusive agent. (d) insured The premium on a life insurance policy will be higher, everything else the same, (a) the higher the life expectancy of the insured. (b) the healthier the insured. (c) if the insured has skydiving as a hobby. (d) the younger the insured. Property insurance would not protect the insured against a loss due to (a) someone stealing a CD player out of their car. (b) losing control of a car and running it into a neighbor's house. (c) damage to the roof of a house from hurricane winds. (d) accidentally falling through the ceiling of your house while in the attic