Examlex

Solved

Which of the Following Statements About an Insurable Interest in Life

question 32

Multiple Choice

Which of the following statements about an insurable interest in life insurance is (are) true?
I.It is required of any person named as beneficiary.
II.It may result from a pecuniary (financial) interest.


Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Market Risk

The risk of financial loss due to factors that affect the entire market or economy, such as changes in interest rates, inflation, and recessions.

Simulation Analysis

Simulation analysis involves using a model to estimate how uncertain variables in a financial or project plan might affect outcomes, helping in assessing risk and making decisions.

Risk-adjusted Discount Rate

A discount rate that has been altered to account for the risk of the cash flows, used in capital budgeting to reflect the project's risk.

Related Questions