Question 1

A grace period permits the policy holder to retain insurance even though the premium has not been paid for

Accepted Answer

A)  a year. 
B)  6 months. 
C)  3 months. 
D)  2 months. 
E)  30 days 
A)  a year. 
B)  6 months. 
C)  3 months. 
D)  2 months. 
E)  30 days

Question 2

A variable life policy combines life insurance coverage with tax-favored investment options.

Accepted Answer

A) True 
 B)False

Question 3

The primary purpose of life insurance is to provide

Accepted Answer

A)  financial security for dependents in the event of death. 
B)  protection from creditors and lawsuits. 
C)  tax-advantaged investments. 
D)  high-yield investments. 
E)  all of the above. 
A)  financial security for dependents in the event of death. 
B)  protection from creditors and lawsuits. 
C)  tax-advantaged investments. 
D)  high-yield investments. 
E)  all of the above.

Question 4

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.
-Bill borrowed $30,000 from his $200,000 life insurance policy and then died.Bill's beneficiary will receive [$200,000 | $170,000].

Accepted Answer

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

Question 5

Term life insurance is characterized by

Accepted Answer

A)  level annual premiums throughout life. 
B)  premium amounts related to age. 
C)  inappropriateness for most person's life insurance needs. 
D)  non-convertibility. 
E)  cash value. 
A)  level annual premiums throughout life. 
B)  premium amounts related to age. 
C)  inappropriateness for most person's life insurance needs. 
D)  non-convertibility. 
E)  cash value.

Question 6

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.
-If your insurance policy promises to pay death benefits only if you die during a specified time,you have [term | whole] life insurance.

Accepted Answer

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

Question 7

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.
-Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.

Accepted Answer

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

Question 8

Mary Lou died from a heart attack.Her $20,000 policy had a double indemnity clause.Her beneficiary will receive $40,000.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not true about survivorship insurance?

Accepted Answer

A)  It is needed by most dual-earner families. 
B)  It is also know as last-to-die insurance. 
C)  It is used primarily to help pay estate taxes. 
D)  It is less expensive than two separate policies. 
E)  It covers the lives of two people. 
A)  It is needed by most dual-earner families. 
B)  It is also know as last-to-die insurance. 
C)  It is used primarily to help pay estate taxes. 
D)  It is less expensive than two separate policies. 
E)  It covers the lives of two people.

Question 10

Because premiums get higher as you age,it is probably advisable for you to buy life insurance at age 20 to save money whether or not you need the insurance then.

Accepted Answer

A) True 
 B)False

Question 11

When a primary beneficiary dies before the insured,proceeds are payable to

Accepted Answer

A)  the state 
B)  the probate court 
C)  the insured's estate 
D)  the contingent beneficiary or beneficiaries 
E)  the insurance company keeps the proceeds 
A)  the state 
B)  the probate court 
C)  the insured's estate 
D)  the contingent beneficiary or beneficiaries 
E)  the insurance company keeps the proceeds

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.
-In order to predict accurately the number of losses that will occur in a given time,insurance companies must study [large | small] numbers of cases.

Accepted Answer

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

Question 13

Underwriting is

Accepted Answer

A)  selling insurance at a premium less than that of the competition. 
B)  payment of a claim. 
C)  a method for developing policy wording. 
D)  the determination of which exposures to insure. 
E)  none of these. 
A)  selling insurance at a premium less than that of the competition. 
B)  payment of a claim. 
C)  a method for developing policy wording. 
D)  the determination of which exposures to insure. 
E)  none of these.

Question 14

Generally,the primary purpose of life insurance is to provide a tax-advantaged investment plan.

Accepted Answer

A) True 
 B)False

Question 15

The need for additional life insurance can be determined by looking at the difference between available resources and family monetary needs.

Accepted Answer

A) True 
 B)False

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.
-The beneficiary [will | will not] have to pay income taxes on the proceeds from a life insurance policy.

Accepted Answer

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

Question 17

____ is not a type of term insurance.

Accepted Answer

A)  Limited pay 
B)  Decreasing 
C)  Convertible 
D)  Renewable 
E)  Annual 
A)  Limited pay 
B)  Decreasing 
C)  Convertible 
D)  Renewable 
E)  Annual

Question 18

Joint life insurance is more expensive than two single life policies.

Accepted Answer

A) True 
 B)False

Question 19

Like universal life insurance,variable life insurance provides a minimum guaranteed return.

Accepted Answer

A) True 
 B)False

Question 20

A life insurance contract contains clauses for

Accepted Answer

A)  settlement options. 
B)  policy reinstatement. 
C)  change of policy. 
D)  all of the above. 
E)  none of the above. 
A)  settlement options. 
B)  policy reinstatement. 
C)  change of policy. 
D)  all of the above. 
E)  none of the above.

A grace period permits the policy holder to retain insurance even though the premium has not been paid for

A variable life policy combines life insurance coverage with tax-favored investment options.

The primary purpose of life insurance is to provide

Term life insurance is characterized by

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. -Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.

Mary Lou died from a heart attack.Her $20,000 policy had a double indemnity clause.Her beneficiary will receive $40,000.

Which of the following is not true about survivorship insurance?

Because premiums get higher as you age,it is probably advisable for you to buy life insurance at age 20 to save money whether or not you need the insurance then.

When a primary beneficiary dies before the insured,proceeds are payable to

Underwriting is

Generally,the primary purpose of life insurance is to provide a tax-advantaged investment plan.

The need for additional life insurance can be determined by looking at the difference between available resources and family monetary needs.

____ is not a type of term insurance.

Joint life insurance is more expensive than two single life policies.

Like universal life insurance,variable life insurance provides a minimum guaranteed return.

A life insurance contract contains clauses for

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

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Exam 8: Insuring Your Life

A grace period permits the policy holder to retain insurance even though the premium has not been paid for

A variable life policy combines life insurance coverage with tax-favored investment options.

The primary purpose of life insurance is to provide

Term life insurance is characterized by

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. -Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.

Mary Lou died from a heart attack.Her $20,000 policy had a double indemnity clause.Her beneficiary will receive $40,000.

Which of the following is not true about survivorship insurance?

Because premiums get higher as you age,it is probably advisable for you to buy life insurance at age 20 to save money whether or not you need the insurance then.

When a primary beneficiary dies before the insured,proceeds are payable to

Underwriting is

Generally,the primary purpose of life insurance is to provide a tax-advantaged investment plan.

The need for additional life insurance can be determined by looking at the difference between available resources and family monetary needs.

____ is not a type of term insurance.

Joint life insurance is more expensive than two single life policies.

Like universal life insurance,variable life insurance provides a minimum guaranteed return.

A life insurance contract contains clauses for

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