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Q 1. Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is low and the potential

Q 1. Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is low and the potential financial loss due to the event is small?

Select one:

a. Avoid risk

b. Reduce risk

c. Accept risk

d. Insure against risk

Question 2

Which of the following is considered personal property for home insurance coverage?

Select one:

a. A garage

b. Trees and shrubs

c. Furniture

d. An automobile

Question 3

Individual health insurance plans

Select one:

a. are paid by insurance premiums deducted from your pay cheque.

b. will only cover individuals with no consideration for spouses or beneficiaries.

c. are sought by individuals who wish to supplement group and government plans.

d. cover those individuals with pre-existing conditions at equal premium rates.

Question 4

An individual covered by disability insurance who has recently recovered and is returning to work after receiving benefits would be most concerned with

Select one:

a. the benefit period.

b. the waiting period.

c. the deductible.

d. the non-cancelable provision.

Question 5

What would be the out-of-pocket cost to an individual whose long-term care policy includes a 20 percent coinsurance clause. A current long-term illness has resulted in total expenses of $250,000.

Select one:

a. $0

b. $200,000

c. $250,000

d. $50,000

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