Question 1

All life insurance policies should have a contingent beneficiary designated.

Accepted Answer

A) True 
 B)False

Question 2

All of the following are true regarding Health Savings Accounts except

Accepted Answer

A)  they allow individuals to pay for current health care expenses on a tax-free basis. 
B)  they allow individuals to save for future health care expenses on a tax-free basis. 
C)  balances in HSAs earn interest before they are spent. 
D)  unspent HSA funds are lost as the end of the year. 
A)  they allow individuals to pay for current health care expenses on a tax-free basis. 
B)  they allow individuals to save for future health care expenses on a tax-free basis. 
C)  balances in HSAs earn interest before they are spent. 
D)  unspent HSA funds are lost as the end of the year.

Question 3

The best strategy for health insurance coverage is to purchase a comprehensive policy.Of the following,which additional coverage should you not buy if it is not provided at work or in your individual policy?

Accepted Answer

A)  Accident 
B)  Terminal disease 
C)  Dental 
D)  Eyewear 
E)  You should not buy any of the above if your employer does not provide them. 
A)  Accident 
B)  Terminal disease 
C)  Dental 
D)  Eyewear 
E)  You should not buy any of the above if your employer does not provide them.

Question 4

Roxanne has been stricken with a muscular degeneration disease that may potentially shorten her life span.However,she chose a renewable term insurance policy because she is able to be continually renew the policy for an agreed-upon period,regardless of her deteriorating condition.

Accepted Answer

A) True 
 B)False

Question 5

Under a traditional indemnity plan,most of your expenses are already covered and don't need to be reimbursed,but you're limited to receiving health care from a specified group of participating providers.

Accepted Answer

A) True 
 B)False

Question 6

Group health insurance

Accepted Answer

A)  refers to the way the health insurance is sold rather than to the characteristics of the policy. 
B)  tends to be more expensive. 
C)  reflects the age and health of the policyholder. 
D)  all of the above. 
A)  refers to the way the health insurance is sold rather than to the characteristics of the policy. 
B)  tends to be more expensive. 
C)  reflects the age and health of the policyholder. 
D)  all of the above.

Question 7

Which of the following is a government-sponsored health care plan?

Accepted Answer

A)  Medicare 
B)  Medicaid 
C)  Worker's Compensation 
D)  A and B only 
E)  A, B, and C 
A)  Medicare 
B)  Medicaid 
C)  Worker's Compensation 
D)  A and B only 
E)  A, B, and C

Question 8

Life insurance buying is a new experience for many people.Which of the following is not a basic consideration when determining life insurance needs?

Accepted Answer

A)  Whether or not you need life insurance at this time 
B)  The amount of coverage you need now and in the future 
C)  The settlement options 
D)  The type of life insurance that fits your needs 
E)  Shopping around for the best agent and price 
A)  Whether or not you need life insurance at this time 
B)  The amount of coverage you need now and in the future 
C)  The settlement options 
D)  The type of life insurance that fits your needs 
E)  Shopping around for the best agent and price

Question 9

A flexible spending account saves you money on qualifying healthcare and childcare expenses.

Accepted Answer

A) True 
 B)False

Question 10

Statisticians who specialize in estimating the probability of death based on personal characteristics are called

Accepted Answer

A)  morbidity analysts. 
B)  actuaries. 
C)  insurance analysts. 
D)  morbidity statisticians. 
E)  none of the above. 
A)  morbidity analysts. 
B)  actuaries. 
C)  insurance analysts. 
D)  morbidity statisticians. 
E)  none of the above.

Question 11

Why is long-term care insurance needed?

Accepted Answer

A)  It is not covered by major medical insurance. 
B)  It is not covered under Medicare. 
C)  Life expectancies have increased. 
D)  All of the above 
E)  None of the above 
A)  It is not covered by major medical insurance. 
B)  It is not covered under Medicare. 
C)  Life expectancies have increased. 
D)  All of the above 
E)  None of the above

Question 12

For every $100 set aside in a flexible spending account,taxable income is reduced by

Accepted Answer

A)  $10. 
B)  $25. 
C)  $50. 
D)  $100. 
E)  not enough information available. 
A)  $10. 
B)  $25. 
C)  $50. 
D)  $100. 
E)  not enough information available.

Question 13

The ________ rider increases your death benefits at the same rate as inflation without forcing you to complete a new medical exam.

Accepted Answer

A)  waiver of premium for disability 
B)  living benefits 
C)  cost-of-living adjustment (COL
A)  
D)  guaranteed insurability 
E)  accidental death benefit 
A)  waiver of premium for disability 
B)  living benefits 
C)  cost-of-living adjustment (COL
A)  
D)  guaranteed insurability 
E)  accidental death benefit

Question 14

When firms allow employees to "opt out" regarding health care,employees

Accepted Answer

A)  are offered a cash incentive for electing not to cover their families under the company health plan. 
B)  are not eligible to participate if their spouse has health insurance. 
C)  are only eligible to participate if they are single. 
D)  none of the above. 
A)  are offered a cash incentive for electing not to cover their families under the company health plan. 
B)  are not eligible to participate if their spouse has health insurance. 
C)  are only eligible to participate if they are single. 
D)  none of the above.

Question 15

Long-term care insurance may not be a good buy for people under the age of 40.

Accepted Answer

A) True 
 B)False

Question 16

Term life insurance has a life insurance component and a savings plan.

Accepted Answer

A) True 
 B)False

Question 17

You are considering the need for insurance.You desire a policy that provides permanent protection,has a fixed premium,and provides a fixed death benefit.What type of policy would you purchase?

Accepted Answer

A)  Term insurance 
B)  Fixed premium insurance 
C)  Whole life insurance 
D)  Universal life insurance 
E)  None of the above 
A)  Term insurance 
B)  Fixed premium insurance 
C)  Whole life insurance 
D)  Universal life insurance 
E)  None of the above

Question 18

Your grandmother has just turned 65 years old and is now eligible for Medicare.She asks you whether or not she should also purchase Medigap insurance.What would you tell her to do?

Accepted Answer

A)  No, Medicare is a very comprehensive coverage so you won't need any additional coverage. 
B)  Yes, Medicare is very complicated and there are areas not covered so it would be a good idea to purchase additional coverage. 
A)  No, Medicare is a very comprehensive coverage so you won't need any additional coverage. 
B)  Yes, Medicare is very complicated and there are areas not covered so it would be a good idea to purchase additional coverage.

Question 19

When the Affordable Care Act is fully implemented,100 percent of Americans will have health care insurance.

Accepted Answer

A) True 
 B)False

Question 20

Policies define people as disabled if they can't perform

Accepted Answer

A)  the duties of their own occupation. 
B)  the duties of any occupation for which they are reasonably suited. 
C)  their own occupation for the first two years of their disability, and thereafter if they can't perform any occupation for which they are reasonably suited. 
D)  All of the above could be correct, it varies with the policy. 
A)  the duties of their own occupation. 
B)  the duties of any occupation for which they are reasonably suited. 
C)  their own occupation for the first two years of their disability, and thereafter if they can't perform any occupation for which they are reasonably suited. 
D)  All of the above could be correct, it varies with the policy.

All life insurance policies should have a contingent beneficiary designated.

All of the following are true regarding Health Savings Accounts except

The best strategy for health insurance coverage is to purchase a comprehensive policy.Of the following,which additional coverage should you not buy if it is not provided at work or in your individual policy?

Roxanne has been stricken with a muscular degeneration disease that may potentially shorten her life span.However,she chose a renewable term insurance policy because she is able to be continually renew the policy for an agreed-upon period,regardless of her deteriorating condition.

Under a traditional indemnity plan,most of your expenses are already covered and don't need to be reimbursed,but you're limited to receiving health care from a specified group of participating providers.

Group health insurance

Which of the following is a government-sponsored health care plan?

Life insurance buying is a new experience for many people.Which of the following is not a basic consideration when determining life insurance needs?

A flexible spending account saves you money on qualifying healthcare and childcare expenses.

Statisticians who specialize in estimating the probability of death based on personal characteristics are called

Why is long-term care insurance needed?

For every $100 set aside in a flexible spending account,taxable income is reduced by

The ________ rider increases your death benefits at the same rate as inflation without forcing you to complete a new medical exam.

When firms allow employees to "opt out" regarding health care,employees

Long-term care insurance may not be a good buy for people under the age of 40.

Term life insurance has a life insurance component and a savings plan.

You are considering the need for insurance.You desire a policy that provides permanent protection,has a fixed premium,and provides a fixed death benefit.What type of policy would you purchase?

Your grandmother has just turned 65 years old and is now eligible for Medicare.She asks you whether or not she should also purchase Medigap insurance.What would you tell her to do?

When the Affordable Care Act is fully implemented,100 percent of Americans will have health care insurance.

Policies define people as disabled if they can't perform

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

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Exam 9: Life and Health Insurance

All life insurance policies should have a contingent beneficiary designated.

All of the following are true regarding Health Savings Accounts except

The best strategy for health insurance coverage is to purchase a comprehensive policy.Of the following,which additional coverage should you not buy if it is not provided at work or in your individual policy?

Roxanne has been stricken with a muscular degeneration disease that may potentially shorten her life span.However,she chose a renewable term insurance policy because she is able to be continually renew the policy for an agreed-upon period,regardless of her deteriorating condition.

Under a traditional indemnity plan,most of your expenses are already covered and don't need to be reimbursed,but you're limited to receiving health care from a specified group of participating providers.

Group health insurance

Which of the following is a government-sponsored health care plan?

Life insurance buying is a new experience for many people.Which of the following is not a basic consideration when determining life insurance needs?

A flexible spending account saves you money on qualifying healthcare and childcare expenses.

Statisticians who specialize in estimating the probability of death based on personal characteristics are called

Why is long-term care insurance needed?

For every $100 set aside in a flexible spending account,taxable income is reduced by

The ________ rider increases your death benefits at the same rate as inflation without forcing you to complete a new medical exam.

When firms allow employees to "opt out" regarding health care,employees

Long-term care insurance may not be a good buy for people under the age of 40.

Term life insurance has a life insurance component and a savings plan.

You are considering the need for insurance.You desire a policy that provides permanent protection,has a fixed premium,and provides a fixed death benefit.What type of policy would you purchase?

Your grandmother has just turned 65 years old and is now eligible for Medicare.She asks you whether or not she should also purchase Medigap insurance.What would you tell her to do?

When the Affordable Care Act is fully implemented,100 percent of Americans will have health care insurance.

Policies define people as disabled if they can't perform

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