1. The Mid-states Trading Company (a futures trading firm located in Chicago) takes out a fidelity bond policy on each of its trading employees. This would be a example of the firm insuring for speculative risk connected the company faces in its operations.

   True

   False

1. A family takes out a term life insurance policy to cover a 30 year mortgage they acquire at a local bank. Under the term policy the mortgage will be paid off in the case of death of either of the spouses during the life of the mortgage. In this case the family is utilizing an increasing term insurance policy

   True

   False

1. The use of an on-site inspection of a company's manufacturing complex by an insurance inspector would be an example of a "safety program" being employed by an insurance company to help to reduce the insurance company's exposure to objective risk.

   True

   False