Question 1

The probability of a loss occurring can be reduced by

Accepted Answer

A)  risk observance. 
B)  loss prevention. 
C)  risk assumption. 
D)  risk retention. 
E)  insurance. 
A)  risk observance. 
B)  loss prevention. 
C)  risk assumption. 
D)  risk retention. 
E)  insurance.

Question 2

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.
-Credit life insurance is generally considered to be a [good | poor] life insurance buy.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

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.
-A life insurance policy should contain which of the following? [policy description | co-insurance clause].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

A life insurance policy should contain all the following except

Accepted Answer

A)  Policy description 
B)  Underwriting discussion 
C)  Column definitions 
D)  Co-insurance clause 
E)  Disclaimer 
A)  Policy description 
B)  Underwriting discussion 
C)  Column definitions 
D)  Co-insurance clause 
E)  Disclaimer

Question 5

All types of life insurance offer a cash surrender value.

Accepted Answer

A) True 
 B)False

Question 6

The needs approach to determining the amount of life insurance considers

Accepted Answer

A)  family income. 
B)  paying off debts. 
C)  special financial needs. 
D)  liquidity. 
E)  all of these. 
A)  family income. 
B)  paying off debts. 
C)  special financial needs. 
D)  liquidity. 
E)  all of these.

Question 7

____ is a common provision in many term policies.

Accepted Answer

A)  A reward clause 
B)  A renewable clause 
C)  Cash value 
D)  A limited clause 
E)  An arbitration clause 
A)  A reward clause 
B)  A renewable clause 
C)  Cash value 
D)  A limited clause 
E)  An arbitration clause

Question 8

Rodney and Toni are a young couple with two small children.They are doing well financially but their life insurance needs are high and their budget is tight.What type of life insurance will give them the most protection for their money?

Accepted Answer

A)  continuous premium 
B)  universal life 
C)  paid up life 
D)  term life 
E)  variable life 
A)  continuous premium 
B)  universal life 
C)  paid up life 
D)  term life 
E)  variable life

Question 9

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 [policy owner | insurance company] makes the investment decisions with universal life insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Insurance is a tool that can lessen ____ risk.

Accepted Answer

A)  social 
B)  mental 
C)  economic 
D)  accident 
E)  exposure 
A)  social 
B)  mental 
C)  economic 
D)  accident 
E)  exposure

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 policy owner assumes the investment risk with [whole life | variable life] insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

If life insurance is convertible,the policy can be

Accepted Answer

A)  transferred to the life of another person. 
B)  exchanged for cash. 
C)  changed to health or disability protection 
D)  changed to another type of life insurance. 
E)  revised as needed. 
A)  transferred to the life of another person. 
B)  exchanged for cash. 
C)  changed to health or disability protection 
D)  changed to another type of life insurance. 
E)  revised as needed.

Question 14

Cash value is an important component of whole life,universal life,and variable life but is never a component of term insurance.

Accepted Answer

A) True 
 B)False

Question 15

Life insurance designed to pay the balance on a mortgage is an example of a good use decreasing term policy.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following companies does NOT rate the financial strength of life insurance companies?

Accepted Answer

A)  A.M. Best 
B)  Moody's 
C)  Duff & Phelps 
D)  Weiss 
E)  Welch's 
A)  A.M. Best 
B)  Moody's 
C)  Duff & Phelps 
D)  Weiss 
E)  Welch's

Question 17

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 [policy owner | insurance company] makes the investment decisions with variable life insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

Accepted Answer

A) True 
 B)False

Question 19

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 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

The probability of a loss occurring can be reduced by

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. -Credit life insurance is generally considered to be a [good | poor] life insurance buy.

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. -A life insurance policy should contain which of the following? [policy description | co-insurance clause].

A life insurance policy should contain all the following except

All types of life insurance offer a cash surrender value.

The needs approach to determining the amount of life insurance considers

____ is a common provision in many term policies.

Rodney and Toni are a young couple with two small children.They are doing well financially but their life insurance needs are high and their budget is tight.What type of life insurance will give them the most protection for their money?

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 [policy owner | insurance company] makes the investment decisions with universal life insurance.

Insurance is a tool that can lessen ____ risk.

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

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 policy owner assumes the investment risk with [whole life | variable life] insurance.

If life insurance is convertible,the policy can be

Cash value is an important component of whole life,universal life,and variable life but is never a component of term insurance.

Life insurance designed to pay the balance on a mortgage is an example of a good use decreasing term policy.

Which of the following companies does NOT rate the financial strength of life insurance companies?

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 [policy owner | insurance company] makes the investment decisions with variable life insurance.

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

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.

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

Using Financial Statements and Budgets

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

The probability of a loss occurring can be reduced by

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. -Credit life insurance is generally considered to be a [good | poor] life insurance buy.

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. -A life insurance policy should contain which of the following? [policy description | co-insurance clause].

A life insurance policy should contain all the following except

All types of life insurance offer a cash surrender value.

The needs approach to determining the amount of life insurance considers

____ is a common provision in many term policies.

Rodney and Toni are a young couple with two small children.They are doing well financially but their life insurance needs are high and their budget is tight.What type of life insurance will give them the most protection for their money?

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 [policy owner | insurance company] makes the investment decisions with universal life insurance.

Insurance is a tool that can lessen ____ risk.

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

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 policy owner assumes the investment risk with [whole life | variable life] insurance.

If life insurance is convertible,the policy can be

Cash value is an important component of whole life,universal life,and variable life but is never a component of term insurance.

Life insurance designed to pay the balance on a mortgage is an example of a good use decreasing term policy.

Which of the following companies does NOT rate the financial strength of life insurance companies?

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 [policy owner | insurance company] makes the investment decisions with variable life insurance.

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

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.

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

Using Financial Statements and Budgets

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