AAFM Exam CWM_LEVEL_2 Topic 2 Question 84 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 84
Topic #: 2

Section C (4 Mark)

Read the senario and answer to the question.

Assume the following additional facts:

The Shankers have purchased a homeowner's policy (comprehensive) covering 100% of the replacement cost of their residence. This policy has a Rs. 500 deductible. Also, they have purchased a disability income policy with a 30-day elimination period and an any-occupation definition of disability.

What actions should the Shankers consider in order to improve the quality of the insurance program described above?

A(I) only

B(I) and (IV) only

C(I) and (III) only

D(II) and (IV) only

Show Suggested Answer

Suggested Answer: B

by Mozell at Aug 06, 2024, 06:30 AM

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Armanda

3 months ago

I think the Shankers should consider adding an umbrella policy to provide additional liability coverage beyond their homeowner's policy.

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Gaynell

3 months ago

I believe they should also review their disability income policy to ensure it provides adequate coverage in case of any unforeseen circumstances.

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Eliz

4 months ago

I agree with you, Iesha. Increasing the deductible can help lower their premium and save money in the long run.

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Iesha

4 months ago

I think the Shankers should consider increasing their deductible to reduce their premium costs.

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Valene

4 months ago

Who needs insurance when you can just live in a bubble, am I right? But in all seriousness, these options seem pretty solid.

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Lettie

4 months ago

Option (I) and (III) seem like the best choices to me. Increasing the deductible and adding an inflation guard could really help improve their coverage.

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Martha

4 months ago

Wait, they have a homeowner's policy and a disability policy? What is this, a two-for-one sale?

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Chara

4 months ago

The homeowner's policy with a 500 deductible seems a bit high. They should consider increasing the deductible to lower the premiums.

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Ivory

4 months ago

It's important for the Shankers to regularly review and update their insurance policies to ensure they have adequate coverage.

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Clorinda

4 months ago

Maybe they should review their disability income policy to see if there are any better options available.

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Pearline

4 months ago

They could also look into adding an umbrella policy for additional liability coverage.

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Chauncey

4 months ago

Consider increasing the deductible on the homeowner's policy to lower the premiums.

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