Be considered an above average insurance risk
Be considered a below average insurance risk
Require insurance cover
Require reinsurance cover
Answer is Right!
Answer is Wrong!
The correct answer is: B. Be considered a below average insurance risk.
A cautious person is less likely to take risks, which means they are less likely to make claims on their insurance policy. This makes them a lower risk for insurers, and therefore they are more likely to be considered a below average insurance risk.
Option A is incorrect because a cautious person is less likely to make claims, which means they are a lower risk for insurers.
Option C is incorrect because insurance cover is required by law in most countries, regardless of a person’s risk level.
Option D is incorrect because reinsurance is only required for very large risks, which a cautious person is unlikely to be.