In the Context of Insurance, Everyone Typically Has to Pay

question 75

Multiple Choice

In the context of insurance, everyone typically has to pay a higher premium because of:

• A)risk pooling.
• B)diversification.
• C)risk aversion.
• D)adverse selection.

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Definitions:

Devise

A legal term for the bequest of real estate property through a will.

Real Property

Real property includes land and anything permanently attached to it, like buildings, in contrast with personal property, which is movable.

Personal Property

Assets that are movable and not fixed to one location, such as furniture, vehicles, and equipment, contrary to real estate.

Demonstrative Legacy

A specific bequest in a will, directing a particular sum of money to be paid out of a specified asset or fund.