Identify the Correct Statement About Life and Health Insurance

question 70

Multiple Choice

Identify the correct statement about life and health insurance.

• A)Private life insurance companies provide insurance, and individuals have to buy their products on an involuntary basis.
• B)Property/casualty insurers do not sell health insurance.
• C)Life and health insurance is available only on an individual basis.
• D)The Social Security program provides substantial amounts of life/health insurance, and individuals voluntarily decide whether or not to buy their products.
• E)It covers exposures to the perils of disability and old age.

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Definitions:

Cash Payments

Financial transactions involving the transfer of cash from one party to another, typically as a form of payment for goods, services, or expenses.

Noncash Investing

Investment activities that affect the long-term assets of a company but do not result in cash outlays in the immediate term.

Financing Activities

Transactions that involve raising funds to finance the company's operations and expansions, such as issuing stocks or bonds.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not included in cash equivalents.