Consider an Insurance Policy with $15,000 Worth of Coverage

question 20

Multiple Choice

Consider an insurance policy with $15,000 worth of coverage. If there is a 10% chance the owner of the policy will file a claim for the $15,000 (and a 90% chance they will not file a claim) , a fair price for this policy is:

• A)$1,000
• B)$1,500
• C)$13,000
• D)$13,500

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Definitions:

Suicidal Ideation

The presence of thoughts or considerations about taking one's own life, ranging from fleeting thoughts to detailed planning.

Depression Or Anxiety

Refers to mental health conditions where depression involves persistent sadness, while anxiety encompasses excessive worry or fear.

Malpractice Complaint

A formal accusation or claim against a professional for negligence, incompetence, or misconduct in the performance of their duties.

Commit Suicide

To intentionally take one's own life, often as a result of psychological conditions such as depression or severe distress.