Question 1

If a life insurance policy pays dividends,it is called:

Accepted Answer

A)  universal life 
B)  participating 
C)  investment grade 
D)  paid-up 
E)  extended 
A)  universal life 
B)  participating 
C)  investment grade 
D)  paid-up 
E)  extended

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.
-Deciding which people will be insured by an insurance company is a function of the [agent | underwriter].

Accepted Answer

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

Question 3

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

Accepted Answer

A) True 
 B)False

Question 4

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 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

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 7

Paying life insurance premiums on a(n)____ basis will be the most economical.

Accepted Answer

A)  annual 
B)  semi annual 
C)  quarterly 
D)  monthly 
E)  It makes no difference. 
A)  annual 
B)  semi annual 
C)  quarterly 
D)  monthly 
E)  It makes no difference.

Question 8

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

Accepted Answer

A) True 
 B)False

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.
-It [is | is not] possible to avoid most risks in your life.

Accepted Answer

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

Question 10

Underwriting helps protect life insurance companies from which of the following:

Accepted Answer

A)  major downturns in the economy 
B)  short-term shocks in the investment markets 
C)  adverse selection 
D)  having too many healthy people buy life insurance 
E)  shifts in the macro-social structure of the population 
A)  major downturns in the economy 
B)  short-term shocks in the investment markets 
C)  adverse selection 
D)  having too many healthy people buy life insurance 
E)  shifts in the macro-social structure of the population

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A life insurance policy should contain a co-insurance clause.

Accepted Answer

A) True 
 B)False

Question 13

Loans are available from almost all life insurance policies.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Group life insurance is often provided as a fringe benefit by employers.

Accepted Answer

A) True 
 B)False

Question 16

The primary purpose of life insurance is to protect family members financially after one's death.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

Accepted Answer

A)  multiple indemnity clause 
B)  guaranteed purchase options 
C)  disability clause 
D)  paid-up insurance option 
E)  extended-term option 
A)  multiple indemnity clause 
B)  guaranteed purchase options 
C)  disability clause 
D)  paid-up insurance option 
E)  extended-term option

Question 18

The basic purpose of insurance is to protect you from the results of accidental losses.

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.
-You would be most likely to assume the risk of a [small | large] potential loss.

Accepted Answer

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

Question 20

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 Choose the word or phrase in [...

If a life insurance policy pays dividends,it is called:

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. -Deciding which people will be insured by an insurance company is a function of the [agent | underwriter].

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

Group life insurance is

Term life insurance is characterized by

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

Paying life insurance premiums on a(n)____ basis will be the most economical.

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

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. -It [is | is not] possible to avoid most risks in your life.

Underwriting helps protect life insurance companies from which of the following:

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

A life insurance policy should contain a co-insurance clause.

Loans are available from almost all life insurance policies.

The primary purpose of life insurance is to provide

Group life insurance is often provided as a fringe benefit by employers.

The primary purpose of life insurance is to protect family members financially after one's death.

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

The basic purpose of insurance is to protect you from the results of accidental losses.

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.

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.

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

Exam 8: Insuring Your Life

If a life insurance policy pays dividends,it is called:

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. -Deciding which people will be insured by an insurance company is a function of the [agent | underwriter].

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

Group life insurance is

Term life insurance is characterized by

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

Paying life insurance premiums on a(n)____ basis will be the most economical.

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

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. -It [is | is not] possible to avoid most risks in your life.

Underwriting helps protect life insurance companies from which of the following:

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

A life insurance policy should contain a co-insurance clause.

Loans are available from almost all life insurance policies.

The primary purpose of life insurance is to provide

Group life insurance is often provided as a fringe benefit by employers.

The primary purpose of life insurance is to protect family members financially after one's death.

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

The basic purpose of insurance is to protect you from the results of accidental losses.

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.

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.

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