Which of the following is not a methodology used to determine the amount of necessary life insurance?

Select one:

a. The Human Life Value Method.

b. The Financial Needs Method.

c. The Ways and Means Method.

d. The Capitalization of Earnings Method.

Question 21

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Which of the following statements is / are correct?

1. The cause of a loss is a peril.

2. A hazard is a condition that increases the probability of a loss occurring.

Select one:

a. 1 only.

b. 2 only.

c. Both 1 and 2.

d. Neither 1 nor 2.

Question 22

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In order to have an insurable risk, all of the following must be present except?

Select one:

a. The loss must be measurable.

b. The loss must be accidental from the insureds point of view.

c. The loss cannot be catastrophic to the insured.

d. The loss must be from a covered exposure.

Question 23

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Which of the following statements regarding life insurance needs is / are correct?

1. The human life value approach looks forward for information.

2. The capitalization of income approach looks at right now only for information.

3. The needs approach looks at future needs of dependents but does not consider the estate that the decedent would have built had he lived.

Select one:

a. 1 only.

b. 1 and 2.

c. 1 and 3.

d. 1, 2, and 3.

Question 24

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All of the following are needed to calculate the clients human life value except:

Select one:

a. Average annual earnings to the age of retirement.

b. Estimated annual Social Security benefits at retirement.

c. Annual self-maintenance costs.

d. Number of years from present age to the contemplated age of retirement for client.

Question 25

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Conditions that increase either the frequency or severity of loss are called:

Select one:

a. Circumstances.

b. Risks.

c. Hazards.

d. Perils.