Which of the Following Statements About Policies Sold to Preferred

question 1

Multiple Choice

Which of the following statements about policies sold to preferred risks is (are) true?
I.Preferred risks are people whose mortality experience (deaths per thousand at a given age) is expected to be more favorable than average.
II.Insurers require preferred risks to purchase at least a minimum amount of life insurance,such as $250,000.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Profit Potential

The capacity or possibility for an investment or business venture to generate earnings above its costs.

Parapatric Speciation

Parapatric speciation is the evolution of new species within a spatially extended population that still has some gene flow.

Allopatric Speciation

The evolution of new species after populations have been separated geographically, preventing gene flow between them.

Sympatric Speciation

The evolution of new species within a contiguous population that still has extensive gene flow.