Provide an Appropriate Response

question 54

Multiple Choice

Provide an appropriate response.
-A 28-year-old man pays $181 for a one-year life insurance policy with coverage of $150,000. If the probability that he will live through the year is 0.9994, what is the expected value for the insurance policy?

• A) -$91.00
• B) -$180.89
• C) $90.00
• D) $149,910.00

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Definitions:

Material Breach

A significant violation of a contractual obligation that undermines the contract's purpose, giving the aggrieved party the right to terminate the agreement and seek damages.

Operation of Law

Operation of law refers to rights or duties that are automatically assigned to a person by virtue of legal rules, rather than by acts or agreements of the parties involved.

Examination Under Oath

A formal questioning process in a legal setting where the person being examined swears to tell the truth.

Actual Prejudice

Harm or disadvantage that occurs as a result of delays or errors in the legal process.