In making decisions about insurance,a crucial piece of information to know is:
A) how easily you can reduce the risk of experiencing the event you're insuring against.
B) how many others will likely be affected by the same risk.
C) how catastrophic would the event's occurrence be if the event you're insuring against happened.
D) when the event you're insuring against is most likely to occur.

Question

Quizplus · Accepted Answer

Knowing how catastrophic an event would be if it occurred is crucial because it helps determine the amount of insurance coverage needed. If the potential losses would be devastating, then it's important to have a higher level of coverage.

In Making Decisions About Insurance,a Crucial Piece of Information to Know