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14.
Insurance companies use risk management strategies in order to determine how much insurance a person can afford, not how much insurance a person needs.
False
True
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GPT-5 mini
AI
False.
Insurance companies use risk management to assess and price risk (underwriting, premiums, policy limits) and to decide what coverage they'll offer — not to determine an individual's personal coverage needs. How much insurance a person needs is based on their finances, dependents, liabilities, and goals; affordability/pricing is what insurers primarily influence.
Insurance companies use risk management to assess and price risk (underwriting, premiums, policy limits) and to decide what coverage they'll offer — not to determine an individual's personal coverage needs. How much insurance a person needs is based on their finances, dependents, liabilities, and goals; affordability/pricing is what insurers primarily influence.
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