Question 1

The one receiving the insurance coverage is the insured.

Accepted Answer

A) True 
 B)False

Question 2

Universal life provides whole life protection.

Accepted Answer

A) True 
 B)False

Question 3

Find the following:
 $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Amount of } & & & \text { Amount Insurance } \
\text { Value of Property } & \text { Insurance } & \text { Kind of Policy } & \text { Actual Fire Loss } & \text { Company will Pay } \
\hline \$ 300,000 & \$ 200,000 & 80 \% \text { Coins. } & \$ 160,000 & \text { A } \
\hline
\end{array}$$

Accepted Answer

The answer of Find the following:
 \[\begin{array} { | l...

Question 4

Melissa Toby, age 36, bought a straight-life insurance policy for $80,000. Calculate her annual premium. If after 20 years she no longer pays premiums, what nonforfeiture options are available to her?

Accepted Answer

$80,000 / $1,000 = 80 × $10.20

Question 5

Bill's office building with a $200,000 value has a rating of 1 with a building classification of B. The contents in the building are valued at $90,000. What is the total annual premium?

Accepted Answer

The answer of Bill's office building with a $200,000 value...

Question 6

Abby Kaminsky, age 32, has decided to take out a limited payment life policy. She chose this since she expects her income to decline in future years. Abby has decided to take out a 20-year payment life policy with a coverage amount of $200,000. Using the tables in the handbook, her annual premium will be:

Accepted Answer

A) $1,158 
B) $2,316 
C) $2,136 
D) $1,518 
E) None of these 
A) $1,158 
B) $2,316 
C) $2,136 
D) $1,518 
E) None of these

Question 7

Match the following terms with their definitions.
-Straight life

Accepted Answer

A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft 
A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft

Question 8

Match the following terms with their definitions.
-Term insurance

Accepted Answer

A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft 
A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft

Question 9

If the insurance company cancels a fire insurance policy, the refund to the insured will be less than if the insured cancels the policy.

Accepted Answer

A) True 
 B)False

Question 10

Match the following terms with their definitions.
-Cash value

Accepted Answer

A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft 
A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft

Question 11

A premium for fire insurance could be lower than someone else's if:

Accepted Answer

A) Building is wood 
B) Roof is not fire resistant 
C) Building is close to a fire hydrant 
D) Goods within store are flammable 
E) None of these 
A) Building is wood 
B) Roof is not fire resistant 
C) Building is close to a fire hydrant 
D) Goods within store are flammable 
E) None of these

Question 12

Melissa Sorez, age 42, takes out a $300,000 five-year term insurance policy. What is her annual premium? At the end of three years, what is the amount of cash value that has built up?

Accepted Answer

The answer of Melissa Sorez, age 42, takes out a...

Question 13

Mia's office building with a $300,000 value has a rating of 2 with a building classification of A. The contents in the building are valued at $120,000. Using the tables in the handbook, the total annual premium is:

Accepted Answer

A) $1,046.40 
B) $990.00 
C) $1,064.40 
D) $1,064.04 
E) None of these 
A) $1,046.40 
B) $990.00 
C) $1,064.40 
D) $1,064.04 
E) None of these

Question 14

Jim Smith, age 25, buys a straight-life policy for $105,000. What is his annual premium? If after 15 years he no longer wants to pay the premium, what nonforfeiture values are available to him?

Accepted Answer

$748.65, $15,540 cas

Question 15

Find the following:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \
\hline \$ 50,000 & 28 \mathrm { M } & \text { Straight Life } & \text { A } \
\hline
\end{array}$$

Accepted Answer

The answer of Find the following:
 \[\begin{array} { | l...

Question 16

The beneficiary pays the insurance to the insured.

Accepted Answer

A) True 
 B)False

Question 17

Maryville University purchased building insurance for a temporary bookstore for a total annual charge of $1,600. It closed the facility after five months. What is the refund?

Accepted Answer

A) $768 
B) $976 
C) $624 
D) $832 
E) None of these 
A) $768 
B) $976 
C) $624 
D) $832 
E) None of these

Question 18

Find the following:
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Annual Premium } & \text { Canceled After } & \text { Canceled By } & \text { Premium Cost } & \text { Refund } \
\hline \$ 900 & 8 \text { months } & \text { Insurer } & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Find the following:
 \[\begin{array} { | l...

Question 19

Extended term insurance means the policy continues but at a face amount that is less than the original policy.

Accepted Answer

A) True 
 B)False

Question 20

As a result of few suits as well as high operating costs, no-fault has reduced some premium costs.

Accepted Answer

A) True 
 B)False

Exam 20: Life, Fire, and Auto Insurance

The one receiving the insurance coverage is the insured.

Universal life provides whole life protection.

Find the following: Amount of Amount Insurance Value of Property Insurance Kind of Policy Actual Fire Loss Company will Pay \ 300,000 \ 200,000 80\% Coins. \ 160,000 A

Melissa Toby, age 36, bought a straight-life insurance policy for $80,000. Calculate her annual premium. If after 20 years she no longer pays premiums, what nonforfeiture options are available to her?

Bill's office building with a $200,000 value has a rating of 1 with a building classification of B. The contents in the building are valued at $90,000. What is the total annual premium?

Match the following terms with their definitions. -Straight life

Match the following terms with their definitions. -Term insurance

If the insurance company cancels a fire insurance policy, the refund to the insured will be less than if the insured cancels the policy.

Match the following terms with their definitions. -Cash value

A premium for fire insurance could be lower than someone else's if:

Melissa Sorez, age 42, takes out a $300,000 five-year term insurance policy. What is her annual premium? At the end of three years, what is the amount of cash value that has built up?

Mia's office building with a $300,000 value has a rating of 2 with a building classification of A. The contents in the building are valued at $120,000. Using the tables in the handbook, the total annual premium is:

Jim Smith, age 25, buys a straight-life policy for $105,000. What is his annual premium? If after 15 years he no longer wants to pay the premium, what nonforfeiture values are available to him?

Find the following: Face Value Age and Sex of Insured Type of Insurance Annual Premium \ 50,000 28 Straight Life A

The beneficiary pays the insurance to the insured.

Maryville University purchased building insurance for a temporary bookstore for a total annual charge of $1,600. It closed the facility after five months. What is the refund?

Find the following: Annual Premium Canceled After Canceled By Premium Cost Refund \ 900 8 months Insurer A B

Extended term insurance means the policy continues but at a face amount that is less than the original policy.

As a result of few suits as well as high operating costs, no-fault has reduced some premium costs.

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