Question 1

What are the risks associated with term insurance policies?

Accepted Answer

A)  You may need to have insurance coverage past the term expiration date. 
B)  The cash value does not earn a decent return. 
C)  The renewal premium may be cost prohibitive. 
D)  Both A and C are correct. 
A)  You may need to have insurance coverage past the term expiration date. 
B)  The cash value does not earn a decent return. 
C)  The renewal premium may be cost prohibitive. 
D)  Both A and C are correct.

Question 2

According to the Keown book,50 percent of U.S.households have no life insurance coverage.

Accepted Answer

A) True 
 B)False

Question 3

Which of these life insurance plans holds the annual premium constant but decreases the face value of the policy each year?

Accepted Answer

A)  Decreasing term 
B)  Credit life 
C)  Mortgage life 
D)  Universal life 
E)  All of the above 
A)  Decreasing term 
B)  Credit life 
C)  Mortgage life 
D)  Universal life 
E)  All of the above

Question 4

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

Accepted Answer

A)  automatically file the claims for you. 
B)  require you to see only a specified group of doctors, hospitals, and clinics. 
C)  are more expensive to operate and cost you more money. 
D)  are less efficient. 
E)  both A and B above. 
A)  automatically file the claims for you. 
B)  require you to see only a specified group of doctors, hospitals, and clinics. 
C)  are more expensive to operate and cost you more money. 
D)  are less efficient. 
E)  both A and B above.

Question 5

Long-term disability will replace 100% of your income while you are unable to return to work.

Accepted Answer

A) True 
 B)False

Question 6

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Accepted Answer

A) True 
 B)False

Question 7

Sandra is terrible at saving;therefore her insurance advisor suggested a term life insurance policy for her since it has a saving/investing aspect.

Accepted Answer

A) True 
 B)False

Question 8

Describe the major difference between renewable term and group term versus decreasing term and credit/mortgage group life insurance.

Accepted Answer

Renewable term and group term are genera

Question 9

Life insurance is not meant to benefit you,its purpose is to protect others in the event of your death.

Accepted Answer

A) True 
 B)False

Question 10

Surgical insurance covers the cost of surgery.A surgical policy generally lists which of the following?

Accepted Answer

A)  The specific operations it will cover 
B)  The maximum dollar amount that will be paid for each operation 
C)  The dollar amount that will be paid to the surgeon for the operation 
D)  All of the above 
A)  The specific operations it will cover 
B)  The maximum dollar amount that will be paid for each operation 
C)  The dollar amount that will be paid to the surgeon for the operation 
D)  All of the above

Question 11

Tell how a PPO is different from a fee-for-service or HMO plan.

Accepted Answer

A preferred provider organization is a b

Question 12

Which statement is false regarding benefit periods on long-term health care insurance?

Accepted Answer

A)  Long-term health care coverage can range all the way from one year to a lifetime. 
B)  The average stay in a nursing home is 2.44 years. 
C)  The recommended minimum benefit period is six to nine years. 
D)  Because women tend to spend longer periods of time in nursing care compared to men, women should consider a longer benefit period. 
A)  Long-term health care coverage can range all the way from one year to a lifetime. 
B)  The average stay in a nursing home is 2.44 years. 
C)  The recommended minimum benefit period is six to nine years. 
D)  Because women tend to spend longer periods of time in nursing care compared to men, women should consider a longer benefit period.

Question 13

Why are so many people without disability insurance?

Accepted Answer

A)  Employers don't supply it. 
B)  People don't know about it. 
C)  The price is prohibitive for most people. 
D)  They cannot qualify for it. 
E)  It may not be available in their state. 
A)  Employers don't supply it. 
B)  People don't know about it. 
C)  The price is prohibitive for most people. 
D)  They cannot qualify for it. 
E)  It may not be available in their state.

Question 14

Some disability insurance policies offer residual or partial payments when returning to work part-time.These payments are especially desirable for those who are

Accepted Answer

A)  under the age of 40. 
B)  over the age of 50. 
C)  one year away from retirement. 
D)  self-employed. 
E)  none of the above. 
A)  under the age of 40. 
B)  over the age of 50. 
C)  one year away from retirement. 
D)  self-employed. 
E)  none of the above.

Question 15

Which of the following is not an insurance rating service?

Accepted Answer

A)  Weiss 
B)  Moody's 
C)  Standards & Fitch 
D)  A.M. Best 
A)  Weiss 
B)  Moody's 
C)  Standards & Fitch 
D)  A.M. Best

Question 16

Name and briefly describe the ten features found in almost all life insurance contracts.

Accepted Answer

1. The beneficiary provision allows for

Question 17

Joleene is a single parent with two children and earns $45,000 per year.She is purchasing term life insurance for 15 years until her youngest child is self supporting.Assuming her survivors can receive a 3% after-tax,inflation return on insurance proceeds,use the earnings multiple approach to calculate the face value of Joleene's policy.

Accepted Answer

A)  $33,445 
B)  $547,851 
C)  $397,548 
D)  $556,668 
E)  None of the above 
A)  $33,445 
B)  $547,851 
C)  $397,548 
D)  $556,668 
E)  None of the above

Question 18

A method of determining how much life insurance you require based on funds your family would require to maintain its lifestyle after your death is called the

Accepted Answer

A)  earnings multiple approach. 
B)  needs approach. 
C)  cash liquidity approach. 
D)  funds analysis approach. 
E)  none of the above. 
A)  earnings multiple approach. 
B)  needs approach. 
C)  cash liquidity approach. 
D)  funds analysis approach. 
E)  none of the above.

Question 19

Sally's employer's insurance company does not offer eye insurance.She has always had 20/20 vision and as a healthy 24 year old assumes her eyes will not change drastically.Should she purchase a vision policy since her employer does not offer such a plan?

Accepted Answer

A)  Yes 
B)  No 
A)  Yes 
B)  No

Question 20

With the needs approach,you should take into consideration any additional insurance policies that have been taken out on your life.

Accepted Answer

A) True 
 B)False

What are the risks associated with term insurance policies?

According to the Keown book,50 percent of U.S.households have no life insurance coverage.

Which of these life insurance plans holds the annual premium constant but decreases the face value of the policy each year?

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

Long-term disability will replace 100% of your income while you are unable to return to work.

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Sandra is terrible at saving;therefore her insurance advisor suggested a term life insurance policy for her since it has a saving/investing aspect.

Describe the major difference between renewable term and group term versus decreasing term and credit/mortgage group life insurance.

Life insurance is not meant to benefit you,its purpose is to protect others in the event of your death.

Surgical insurance covers the cost of surgery.A surgical policy generally lists which of the following?

Tell how a PPO is different from a fee-for-service or HMO plan.

Which statement is false regarding benefit periods on long-term health care insurance?

Why are so many people without disability insurance?

Some disability insurance policies offer residual or partial payments when returning to work part-time.These payments are especially desirable for those who are

Which of the following is not an insurance rating service?

Name and briefly describe the ten features found in almost all life insurance contracts.

A method of determining how much life insurance you require based on funds your family would require to maintain its lifestyle after your death is called the

Sally's employer's insurance company does not offer eye insurance.She has always had 20/20 vision and as a healthy 24 year old assumes her eyes will not change drastically.Should she purchase a vision policy since her employer does not offer such a plan?

With the needs approach,you should take into consideration any additional insurance policies that have been taken out on your life.

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 risks associated with term insurance policies?

According to the Keown book,50 percent of U.S.households have no life insurance coverage.

Which of these life insurance plans holds the annual premium constant but decreases the face value of the policy each year?

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

Long-term disability will replace 100% of your income while you are unable to return to work.

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Sandra is terrible at saving;therefore her insurance advisor suggested a term life insurance policy for her since it has a saving/investing aspect.

Describe the major difference between renewable term and group term versus decreasing term and credit/mortgage group life insurance.

Life insurance is not meant to benefit you,its purpose is to protect others in the event of your death.

Surgical insurance covers the cost of surgery.A surgical policy generally lists which of the following?

Tell how a PPO is different from a fee-for-service or HMO plan.

Which statement is false regarding benefit periods on long-term health care insurance?

Why are so many people without disability insurance?

Some disability insurance policies offer residual or partial payments when returning to work part-time.These payments are especially desirable for those who are

Which of the following is not an insurance rating service?

Name and briefly describe the ten features found in almost all life insurance contracts.

A method of determining how much life insurance you require based on funds your family would require to maintain its lifestyle after your death is called the

Sally's employer's insurance company does not offer eye insurance.She has always had 20/20 vision and as a healthy 24 year old assumes her eyes will not change drastically.Should she purchase a vision policy since her employer does not offer such a plan?

With the needs approach,you should take into consideration any additional insurance policies that have been taken out on your life.

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