Question

not a reason why do people buy

• 1 point

insurance?
asset protection
to be safe
shared liability
reduced risk from financial loss
which of these people is most

• 1 point

likely to be offered a discounted rate
on his or her homeowners or renters
insurance policy?
a renter who just set up a graphic design
business in a spare room
a homeowner who just hosted a very
profitable garage sale
a renter who has had coverage from the
same insurance company for 25 years

Explanation:

For the first question:

• Asset protection is a reason as insurance can protect assets.
• To be safe is a general reason related to insurance's purpose.
• Shared liability is a key concept in insurance (policyholders share risks).
• Reduced risk from financial loss is a core reason.

For the second question:

• A renter with 25 - year coverage from the same company is likely to get a discount (loyalty often leads to discounts). A renter starting a business may increase risk (no discount). A homeowner with a garage sale has no direct relation to insurance discount criteria.

Answer:

For the first question: All options are reasons (but if forced to choose based on common mis - understanding, no option is incorrect in a strict sense. However, if we consider that "to be safe" is a very broad and less technical reason compared to the others which are more insurance - specific concepts).
For the second question: a renter who has had coverage from the same insurance company for 25 years.