TRUE FALSE (2 points each) 1. Risk is uncertainty regarding economic loss. True Insurance company underwriters determine who they can insure and what rating-class is appropriate. Generally, the primary purpose of life insurance is to provide a tax-advantaged investment plan. The multiple of earnings approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits. 5. The primary purpose of life insurance is to protect family members financially after one's death. 6. Term life insurance is generally the most affordable type of life insurance for young families. 7. A variable life policy combines life insurance coverage with tax-favored investment options. 8. Group life insurance is usually term life insurance. 9. An attractive feature of a term life insurance policy is the availability of loans from the cash value. 10. Cash value is an important component of term, whole life, universal life and variable life. 11. Health insurance costs have been increasing at a rate higher than the CPI. 12. Generally, health insurance is more reasonably priced through group plans than as individual policies. 13. If you lose your job, COBRA permits you to continue your group health insurance coverage permanently as long as you pay the premium within 36 months of the termination of employment. 14. Property insurance is meant to protect property owners from two basic types of exposures, physical loss of property and loss through depreciation. 15. Liability claims may result from alleged negligent acts