Question 1

What are the advantages of term life insurance?

Accepted Answer

A)  It allows you to increase your insurance coverage for specific reasons and specific time periods. 
B)  With decreasing term coverage, your premiums get smaller as you get older. 
C)  It has no investment feature so it costs less than other forms of insurance. 
D)  All of the above are correct. 
E)  Only A and C are correct. 
A)  It allows you to increase your insurance coverage for specific reasons and specific time periods. 
B)  With decreasing term coverage, your premiums get smaller as you get older. 
C)  It has no investment feature so it costs less than other forms of insurance. 
D)  All of the above are correct. 
E)  Only A and C are correct.

Question 2

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following does not offer some form of disability insurance?

Accepted Answer

A)  Employer benefit package 
B)  Individual health policy 
C)  Medicare 
D)  Worker's Comp 
E)  Social Security 
A)  Employer benefit package 
B)  Individual health policy 
C)  Medicare 
D)  Worker's Comp 
E)  Social Security

Question 4

Group insurance premiums are generally more expensive than individual policies with the same coverage.

Accepted Answer

A) True 
 B)False

Question 5

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

Accepted Answer

A) True 
 B)False

Question 6

What are the two basic forms of variable life insurance?

Accepted Answer

The two basic forms

Question 7

Sally Heath has the option of obtaining life insurance through her place of employment.She will not need to take a physical exam.This type of policy would be a/an ________ policy.

Accepted Answer

A)  universal life 
B)  employer's life 
C)  renewable term life 
D)  group term life 
E)  intermediate term life 
A)  universal life 
B)  employer's life 
C)  renewable term life 
D)  group term life 
E)  intermediate term life

Question 8

Why is it critically important to check out the financial health of a Life Insurance Company through a ratings company like A.M.Best before you purchase the insurance?

Accepted Answer

When you purchase a life insurance polic

Question 9

With COBRA coverage,the employer pays the premiums.

Accepted Answer

A) True 
 B)False

Question 10

Genevieve's husband died from lung cancer.As a result,she purchased additional ________ insurance.

Accepted Answer

A)  accident 
B)  dread disease 
C)  dental 
D)  eyewear 
E)  all of the above 
A)  accident 
B)  dread disease 
C)  dental 
D)  eyewear 
E)  all of the above

Question 11

Most major health care policies cover hospital,surgical,and physician coverages.

Accepted Answer

A) True 
 B)False

Question 12

The nonforfeiture right gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.

Accepted Answer

A) True 
 B)False

Question 13

The needs approach attempts to determine the amount of funds necessary to meet the needs of a family after the death of the primary breadwinner.Name the seven common family needs.

Accepted Answer

1. cleanup funds
2. debt elimi

Question 14

At what point does whole life insurance pay the death benefit?

Accepted Answer

A)  When the insured turns 100 years old 
B)  When the maximum stated age is reached by the insured 
C)  Upon due proof of death of the insured 
D)  When the cash value equals the death benefit 
E)  Either A, B, or C above 
A)  When the insured turns 100 years old 
B)  When the maximum stated age is reached by the insured 
C)  Upon due proof of death of the insured 
D)  When the cash value equals the death benefit 
E)  Either A, B, or C above

Question 15

The primary advantage of term insurance is

Accepted Answer

A)  a flexible premium. 
B)  a savings component. 
C)  affordability. 
D)  convertibility. 
A)  a flexible premium. 
B)  a savings component. 
C)  affordability. 
D)  convertibility.

Question 16

Sonny Coltraine was told by a friend that universal life is the best policy.He will find that

Accepted Answer

A)  it will have a tax-deferred savings feature. 
B)  death benefits are not taxable income. 
C)  death benefits and premiums are fixed. 
D)  death benefits and premiums are flexible. 
E)  A, B, and D above. 
A)  it will have a tax-deferred savings feature. 
B)  death benefits are not taxable income. 
C)  death benefits and premiums are fixed. 
D)  death benefits and premiums are flexible. 
E)  A, B, and D above.

Question 17

Under COBRA,if you work for a company with at least 20 employees,you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company,depending on why you left.

Accepted Answer

A)  zero to six months 
B)  6-12 months 
C)  72-84 months 
D)  18-36 months 
E)  none of the above 
A)  zero to six months 
B)  6-12 months 
C)  72-84 months 
D)  18-36 months 
E)  none of the above

Question 18

Briefly explain the four common settlement options.

Accepted Answer

1. The lump-sum settlement gives a benef

Question 19

A guaranteed insurability rider allows you to increase your face value even if your health fails.

Accepted Answer

A) True 
 B)False

Question 20

According to the Keown book,which statement(s)reflect(s)the purpose of the Affordable Care Act? 
I. Improve quality and lower costs of health insurance
II. Provide new consumer protections
III. Minimize discrepancies in pre-existing condition costs
IV. Increase access to affordable health care
V. Hold insurance companies accountable

Accepted Answer

A)  I Only 
B)  I, II, and V 
C)  I, III, and IV 
D)  I, II, IV, and V 
E)  I, II, III, IV, and V 
A)  I Only 
B)  I, II, and V 
C)  I, III, and IV 
D)  I, II, IV, and V 
E)  I, II, III, IV, and V

What are the advantages of term life insurance?

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Which of the following does not offer some form of disability insurance?

Group insurance premiums are generally more expensive than individual policies with the same coverage.

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

What are the two basic forms of variable life insurance?

Sally Heath has the option of obtaining life insurance through her place of employment.She will not need to take a physical exam.This type of policy would be a/an ________ policy.

Why is it critically important to check out the financial health of a Life Insurance Company through a ratings company like A.M.Best before you purchase the insurance?

With COBRA coverage,the employer pays the premiums.

Genevieve's husband died from lung cancer.As a result,she purchased additional ________ insurance.

Most major health care policies cover hospital,surgical,and physician coverages.

The nonforfeiture right gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.

The needs approach attempts to determine the amount of funds necessary to meet the needs of a family after the death of the primary breadwinner.Name the seven common family needs.

At what point does whole life insurance pay the death benefit?

The primary advantage of term insurance is

Sonny Coltraine was told by a friend that universal life is the best policy.He will find that

Under COBRA,if you work for a company with at least 20 employees,you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company,depending on why you left.

Briefly explain the four common settlement options.

A guaranteed insurability rider allows you to increase your face value even if your health fails.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 9: Life and Health Insurance

What are the advantages of term life insurance?

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Which of the following does not offer some form of disability insurance?

Group insurance premiums are generally more expensive than individual policies with the same coverage.

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

What are the two basic forms of variable life insurance?

Sally Heath has the option of obtaining life insurance through her place of employment.She will not need to take a physical exam.This type of policy would be a/an ________ policy.

Why is it critically important to check out the financial health of a Life Insurance Company through a ratings company like A.M.Best before you purchase the insurance?

With COBRA coverage,the employer pays the premiums.

Genevieve's husband died from lung cancer.As a result,she purchased additional ________ insurance.

Most major health care policies cover hospital,surgical,and physician coverages.

The nonforfeiture right gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.

The needs approach attempts to determine the amount of funds necessary to meet the needs of a family after the death of the primary breadwinner.Name the seven common family needs.

At what point does whole life insurance pay the death benefit?

The primary advantage of term insurance is

Sonny Coltraine was told by a friend that universal life is the best policy.He will find that

Under COBRA,if you work for a company with at least 20 employees,you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company,depending on why you left.

Briefly explain the four common settlement options.

A guaranteed insurability rider allows you to increase your face value even if your health fails.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters