When Choosing the Proper Amount of Insurance

question 2

Multiple Choice

When choosing the proper amount of insurance:

• A) one should always insure those exposures that occur most frequently
• B) one should always take a little bit less insurance than the agent recommends to save some money in the long run
• C) one should never expose more to loss than one can afford to lose
• D) one should take the biggest deductible that is available

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Definitions:

Ultimate Reality

A concept in various philosophical and religious traditions referring to the most fundamental nature of existence, beyond which no further causal explanation can be sought.

Anaximander

An early Pre-Socratic philosopher from Miletus in Ionia, notable for his work in cosmology, geography, and biology.

Descartes

René Descartes, a 17th-century French philosopher, mathematician, and scientist, known for his statement "Cogito, ergo sum" (I think, therefore I am) and his contributions to modern philosophy and the development of rationalism.

Substances

Fundamental components or materials that constitute physical reality, having distinct and constant properties.