Question 1

Group life insurance is usually term life insurance.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-[Special-purpose policies | Deferred-premium life insurance] is highly recommended for college students.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

Spreading risk among a large number of people is a major principle of insurance.

Accepted Answer

A) True 
 B)False

Question 4

Insurance underwriters must be experts in actuarial science.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Most term insurance [is | is not] renewable.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 6

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

Accepted Answer

A) True 
 B)False

Question 7

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

Accepted Answer

A)  Computing the Human Life Value. 
B)  Using the probability of death each year,prevailing interest rates and assumed inflation rates to find the discounted present value of a future income stream. 
C)  Assessing the family's total economic needs and subtracting financial resources available to meet those needs. 
D)  Estimating the sum of money which,when paid in installments,will produce the same income as the person would have earned,after deducting assumed amounts for taxes and personal maintenance expenses. 
E)  Using a multiple of earnings adjusted for occupation. 
A)  Computing the Human Life Value. 
B)  Using the probability of death each year,prevailing interest rates and assumed inflation rates to find the discounted present value of a future income stream. 
C)  Assessing the family's total economic needs and subtracting financial resources available to meet those needs. 
D)  Estimating the sum of money which,when paid in installments,will produce the same income as the person would have earned,after deducting assumed amounts for taxes and personal maintenance expenses. 
E)  Using a multiple of earnings adjusted for occupation.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Living benefits would [increase | decrease] the proceeds available for beneficiaries.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 9

The least expensive form of whole life insurance protection is

Accepted Answer

A)  term. 
B)  straight life. 
C)  limited payment. 
D)  universal. 
E)  none of the above. 
A)  term. 
B)  straight life. 
C)  limited payment. 
D)  universal. 
E)  none of the above.

Question 10

Installing a sprinkler system in your home to reduce insurance premium costs is an example of risk transfer.

Accepted Answer

A) True 
 B)False

Question 11

The best way to handle risk is to

Accepted Answer

A)  avoid risk 
B)  assume risk. 
C)  try to prevent losses. 
D)  transfer risk to an insurance company. 
E)  use some combination of these. 
A)  avoid risk 
B)  assume risk. 
C)  try to prevent losses. 
D)  transfer risk to an insurance company. 
E)  use some combination of these.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The premium on your term insurance will [increase | stay the same] with each renewal.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

The face value on a whole life policy is likely to change over time.

Accepted Answer

A) True 
 B)False

Question 15

Group life insurance is

Accepted Answer

A)  provided by lenders. 
B)  now called home service life. 
C)  generally a decreasing term policy. 
D)  often more expensive than private coverage. 
E)  All of the above 
A)  provided by lenders. 
B)  now called home service life. 
C)  generally a decreasing term policy. 
D)  often more expensive than private coverage. 
E)  All of the above

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-You would be most likely to assume the risk of a [small | large] potential loss.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The majority of term policies have a [level | decreasing] face value.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

Bill's life insurance premium was due April 4.He died April 20 without having paid this premium.His beneficiary will not receive any payment.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Smoking [will | will not] be a factor in determining life insurance premiums.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 20

Life insurance cash value may be borrowed from the insurer at a low interest and does not need to be paid back.

Accepted Answer

A) True 
 B)False

Group life insurance is usually term life insurance.

Spreading risk among a large number of people is a major principle of insurance.

Insurance underwriters must be experts in actuarial science.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Most term insurance [is | is not] renewable.

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

The least expensive form of whole life insurance protection is

Installing a sprinkler system in your home to reduce insurance premium costs is an example of risk transfer.

The best way to handle risk is to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The premium on your term insurance will [increase | stay the same] with each renewal.

The face value on a whole life policy is likely to change over time.

Group life insurance is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -You would be most likely to assume the risk of a [small | large] potential loss.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The majority of term policies have a [level | decreasing] face value.

Bill's life insurance premium was due April 4.He died April 20 without having paid this premium.His beneficiary will not receive any payment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Smoking [will | will not] be a factor in determining life insurance premiums.

Life insurance cash value may be borrowed from the insurer at a low interest and does not need to be paid back.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 8: Insuring Your Life

Group life insurance is usually term life insurance.

Spreading risk among a large number of people is a major principle of insurance.

Insurance underwriters must be experts in actuarial science.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Most term insurance [is | is not] renewable.

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

The least expensive form of whole life insurance protection is

Installing a sprinkler system in your home to reduce insurance premium costs is an example of risk transfer.

The best way to handle risk is to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The premium on your term insurance will [increase | stay the same] with each renewal.

The face value on a whole life policy is likely to change over time.

Group life insurance is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -You would be most likely to assume the risk of a [small | large] potential loss.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The majority of term policies have a [level | decreasing] face value.

Bill's life insurance premium was due April 4.He died April 20 without having paid this premium.His beneficiary will not receive any payment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Smoking [will | will not] be a factor in determining life insurance premiums.

Life insurance cash value may be borrowed from the insurer at a low interest and does not need to be paid back.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters