Question 1

Households with small children most often have the greatest need for life insurance.

Accepted Answer

A) True 
 B)False

Question 2

Most insurers limit benefits from all sources to no more than ____________ percent of your take-home pay.

Accepted Answer

A) 30-40 
B) 40-50 
C) 70-80 
D) 60-70 
E) 50-60 
A) 30-40 
B) 40-50 
C) 70-80 
D) 60-70 
E) 50-60

Question 3

Renewable term and decreasing term are types of whole life policies.

Accepted Answer

A) True 
 B)False

Question 4

Basically, the word disability has only one definition.

Accepted Answer

A) True 
 B)False

Question 5

The prices of life insurance policies

Accepted Answer

A) vary considerably. 
B) are relatively the same. 
C) are higher for females. 
D) have remained constant. 
E) are higher in the Midwest than in the Northeast. 
A) vary considerably. 
B) are relatively the same. 
C) are higher for females. 
D) have remained constant. 
E) are higher in the Midwest than in the Northeast.

Question 6

Which of the following is not a common settlement option?

Accepted Answer

A) life income option. 
B) limited installment payment. 
C) lump-sum payment. 
D) variable installment payment. 
E) proceeds left with the company. 
A) life income option. 
B) limited installment payment. 
C) lump-sum payment. 
D) variable installment payment. 
E) proceeds left with the company.

Question 7

The easy method of estimating life insurance requirements is remarkably useful.

Accepted Answer

A) True 
 B)False

Question 8

In most cases, your employer pays part or all of the cost of disability income protection plan.

Accepted Answer

A) True 
 B)False

Question 9

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

Accepted Answer

A) Renewability option 
B) Conversion option 
C) Nonforfeiture option 
D) Participating option 
E) Retractable option 
A) Renewability option 
B) Conversion option 
C) Nonforfeiture option 
D) Participating option 
E) Retractable option

Question 10

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

Accepted Answer

A) True 
 B)False

Question 11

The main difference between whole life insurance and critical illness insurance is that critical illness insurance

Accepted Answer

A) has a higher approval rating 
B) is cheaper 
C) is more difficult to understand 
D) pays the proceeds before the policyholder's death 
E) has limits on the amount of insurance you can purchase 
A) has a higher approval rating 
B) is cheaper 
C) is more difficult to understand 
D) pays the proceeds before the policyholder's death 
E) has limits on the amount of insurance you can purchase

Question 12

In Canada all basic medical procedures are provided for under provincial government health plans.

Accepted Answer

A) True 
 B)False

Question 13

If you wanted to pay exactly the same life insurance premium each year, you would choose a

Accepted Answer

A) variable life policy. 
B) participating policy. 
C) term insurance policy. 
D) nonparticipating policy. 
E) endowment policy. 
A) variable life policy. 
B) participating policy. 
C) term insurance policy. 
D) nonparticipating policy. 
E) endowment policy.

Question 14

Generally, disability income policies with shorter waiting periods have lower premiums.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true of long-term-care insurance?

Accepted Answer

A) Canadians are generally unaware of its existence. 
B) It covers you when you have a disability that leaves you unable to take care of yourself. 
C) It covers you when you have a disability and may need help at home with daily activities. 
D) Canadians are generally unaware of its existence and it covers you when you have a disability that leaves you unable to take care of yourself. 
E) Canadians are generally unaware of its existence; it covers you when you have a disability that leaves you unable to take care of yourself; and it covers you when you have a disability and may need help at home with daily activities. 
A) Canadians are generally unaware of its existence. 
B) It covers you when you have a disability that leaves you unable to take care of yourself. 
C) It covers you when you have a disability and may need help at home with daily activities. 
D) Canadians are generally unaware of its existence and it covers you when you have a disability that leaves you unable to take care of yourself. 
E) Canadians are generally unaware of its existence; it covers you when you have a disability that leaves you unable to take care of yourself; and it covers you when you have a disability and may need help at home with daily activities.

Question 16

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a type of supplemental health insurance?

Accepted Answer

A) Dental 
B) Auto 
C) Vision 
D) Travel 
E) Long term care 
A) Dental 
B) Auto 
C) Vision 
D) Travel 
E) Long term care

Question 18

A co-payment provision requires the policyholder to share the expenses beyond the deductible amount.

Accepted Answer

A) True 
 B)False

Question 19

At age 65 what percentage of Canadian males died (rounded to the nearest percent)?

Accepted Answer

A) 10% 
B) 12% 
C) 13% 
D) 16% 
E) 19% 
A) 10% 
B) 12% 
C) 13% 
D) 16% 
E) 19%

Question 20

The principle of home insurance can be applied to the lives of persons.

Accepted Answer

A) True 
 B)False

Households with small children most often have the greatest need for life insurance.

Most insurers limit benefits from all sources to no more than ____________ percent of your take-home pay.

Renewable term and decreasing term are types of whole life policies.

Basically, the word disability has only one definition.

The prices of life insurance policies

Which of the following is not a common settlement option?

The easy method of estimating life insurance requirements is remarkably useful.

In most cases, your employer pays part or all of the cost of disability income protection plan.

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

The main difference between whole life insurance and critical illness insurance is that critical illness insurance

In Canada all basic medical procedures are provided for under provincial government health plans.

If you wanted to pay exactly the same life insurance premium each year, you would choose a

Generally, disability income policies with shorter waiting periods have lower premiums.

Which of the following statements is true of long-term-care insurance?

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

Which of the following is not a type of supplemental health insurance?

A co-payment provision requires the policyholder to share the expenses beyond the deductible amount.

At age 65 what percentage of Canadian males died (rounded to the nearest percent)?

The principle of home insurance can be applied to the lives of persons.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 9: Life, Health, and Disability Insurance

Households with small children most often have the greatest need for life insurance.

Most insurers limit benefits from all sources to no more than ____________ percent of your take-home pay.

Renewable term and decreasing term are types of whole life policies.

Basically, the word disability has only one definition.

The prices of life insurance policies

Which of the following is not a common settlement option?

The easy method of estimating life insurance requirements is remarkably useful.

In most cases, your employer pays part or all of the cost of disability income protection plan.

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

The main difference between whole life insurance and critical illness insurance is that critical illness insurance

In Canada all basic medical procedures are provided for under provincial government health plans.

If you wanted to pay exactly the same life insurance premium each year, you would choose a

Generally, disability income policies with shorter waiting periods have lower premiums.

Which of the following statements is true of long-term-care insurance?

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

Which of the following is not a type of supplemental health insurance?

A co-payment provision requires the policyholder to share the expenses beyond the deductible amount.

At age 65 what percentage of Canadian males died (rounded to the nearest percent)?

The principle of home insurance can be applied to the lives of persons.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters