General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A sole breadwinner whose family depends entirely on her income has a loss exposure to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The family depends on the breadwinner's income, so there is a value (that income stream) exposed to perils that could destroy it — disability and premature death are the perils that would interrupt earnings. The possibility that these perils will occur creates a genuine loss exposure that health, disability, and life insurance are designed to address. Identifying the exposure is the first step in recommending the appropriate coverage.
Why the other options are wrong
- B) The employer's investment returns are not a loss exposure of the insured family; they do not threaten the insured's personal income directly in the way disability or death do.
- C) Rising stock values are a chance of gain, a speculative matter, not a pure risk exposure to the insured's income.
- D) A change in the commissioner's office has no direct financial-loss effect on the family and creates no personal loss exposure.
Memory hook
Income = the value. Disability or death = the perils. That is the breadwinner's exposure.