If You Were a Life Insurance Underwriter, Which of the Following

question 51

Multiple Choice

If you were a life insurance underwriter, which of the following underwriting criteria would you MOST prefer to use because of its reliability?

• A) The applicant's response to the question Have you ever tested positive for HIV?
• B) The applicant's response to the question Have you smoked any tobacco products within the last year?
• C) The opinion of the patient's family doctor as to the overall health of the patient
• D) The results of blood and urine tests taken by your company's own physicians

Comprehend the concept and types of contracts implied by the consideration provided.

Interpret the legal consequences of failed consideration in contractual agreements.

Understand the concept and role of consideration in forming a valid contract.

Identify what constitutes legal consideration and differentiate it from inadequate or no consideration.

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Definitions:

System Reliability

The measure of a system's ability to perform its required functions under stated conditions for a specified period of time.

Probability

A measure of the likelihood of a specific event or outcome, expressed as a number between 0 and 1.

Independent

Not influenced by or dependent on another variable, often referred to in the context of independent variables in statistical analyses.

MTBF

Mean Time Between Failures, a reliability metric that averages the time a system operates before failing.