You Overhear the Following in the Hallway, "Everyone Eventually Dies

question 141

Multiple Choice

You overhear the following in the hallway, "Everyone eventually dies, so how can a life insurance company make a profit? Isn't it a losing battle? You will always have to pay the death benefit to your clients!" You know that life insurance companies can be profitable. This is because

• A) the premiums you pay on a life insurance policy are always more than any death benefit, so the insurance company always comes out ahead.
• B) older people with a greater probability of dying during the term of a policy are denied any death benefits.
• C) the insurance company collects more than enough in premiums today to cover expected benefits payable today.
• D) life insurance companies are notorious for cheating clients with "fine print" policy clauses.

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Definitions:

Compliance Training

Instructional programs designed to inform employees of the organization's policies, regulations, and legal obligations to prevent violations and ensure workplace safety and ethics.

Health And Safety

Policies, procedures, and regulations implemented to prevent accidents and protect individuals from hazards in the workplace.

Task Analysis

The process of breaking down a task into its component steps or parts to understand the skill, knowledge, and abilities required to perform it.

Rating Scales

Tools or instruments used to assign values to variables according to predefined criteria, often used in assessments or surveys to measure attitudes, perceptions, or behaviors.