Question 8 (1 point)

During your recent meeting with Jack, a new client, you discussed the concept of risk. You defined several terms for Jack. Which of the following terms is defined as: the possibility of loss, but no possibility of gain?

Question 8 options:

1)

Pure Risk

2)

Perils

3)	Risk Transfer

4)	Open-perils

Question 9 (1 point)

Which of the following would not be considered a personal risk?

Question 9 options:

1)	Being diagnosed with a curable form of cancer.

2)	Dying at age 42 given a normal life expectancy of age 80.

3)	Injuring a passenger in your vehicle during an auto accident that was your fault.

4)	Becoming disabled due to a car accident.

Question 10 (1 point)

You recently met with your client, Adam.. Don is widowed and has one dependent child. During your meeting with him you discussed the concept of risk management. Which of the following statements regarding the ways to manage risk is incorrect?

Question 10 options:

1)	The selling of Adams Jet Ski is an example of risk reduction.

2)	Insurance is not necessary for every risk of financial loss.

3)	Purchasing a warranty is an example of risk transfer.

4)	Not purchasing life insurance is an example of risk retention.