Question 1

A factor that affects the cost of a life insurance policy is

Accepted Answer

A) the seasons. 
B) inflation. 
C) provincial laws. 
D) federal laws. 
E) the mortality rate. 
A) the seasons. 
B) inflation. 
C) provincial laws. 
D) federal laws. 
E) the mortality rate.

Question 2

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

Accepted Answer

A) Comprehensive major medical 
B) Major medical expense 
C) Physician's expense 
D) Disability income 
E) Surgical expense 
A) Comprehensive major medical 
B) Major medical expense 
C) Physician's expense 
D) Disability income 
E) Surgical expense

Question 3

The "free-look" period allows you to cancel your life insurance without penalty.

Accepted Answer

A) True 
 B)False

Question 4

Critical illness benefits are paid

Accepted Answer

A) immediately after the policyholder dies 
B) to the policyholder before he or she dies 
C) in equal installments over a period of 5 years 
D) to the spouse of the policy holder 
E) five days after the policyholder dies 
A) immediately after the policyholder dies 
B) to the policyholder before he or she dies 
C) in equal installments over a period of 5 years 
D) to the spouse of the policy holder 
E) five days after the policyholder dies

Question 5

What is the maximum term for term life insurance?

Accepted Answer

A) 25 years 
B) 10 years 
C) 40 years 
D) 100 years 
E) 5 years 
A) 25 years 
B) 10 years 
C) 40 years 
D) 100 years 
E) 5 years

Question 6

Dental expense insurance provides reimbursement for

Accepted Answer

A) oral examinations. 
B) fillings. 
C) extractions. 
D) inlays. 
E) all of the above provide reimbursement. 
A) oral examinations. 
B) fillings. 
C) extractions. 
D) inlays. 
E) all of the above provide reimbursement.

Question 7

If inflation is 3% how many years will it take to decrease in value to less that 50% of the original value (use the closest 5 year time period)?

Accepted Answer

A) 10 
B) 15 
C) 20 
D) 25 
E) 30 
A) 10 
B) 15 
C) 20 
D) 25 
E) 30

Question 8

The premium for the whole life policy increases with your age.

Accepted Answer

A) True 
 B)False

Question 9

Who has the greatest need for life insurance?

Accepted Answer

A) children 
B) singles living alone 
C) singles living with parents 
D) dual income couple 
E) households with small children 
A) children 
B) singles living alone 
C) singles living with parents 
D) dual income couple 
E) households with small children

Question 10

Group health insurance will cover you but not your immediate family.

Accepted Answer

A) True 
 B)False

Question 11

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Accepted Answer

A) group health 
B) individual health 
C) hospital expense 
D) surgical expense 
E) physician's expense 
A) group health 
B) individual health 
C) hospital expense 
D) surgical expense 
E) physician's expense

Question 12

Generally, disability income policies with longer waiting periods

Accepted Answer

A) have higher premiums. 
B) have lower premiums. 
C) have about the same premium. 
D) Are issued by smaller insurance companies. 
E) Are issued by larger insurance companies. 
A) have higher premiums. 
B) have lower premiums. 
C) have about the same premium. 
D) Are issued by smaller insurance companies. 
E) Are issued by larger insurance companies.

Question 13

Which of the following items are required in calculating your life insurance need?

Accepted Answer

A) annual income and approximate expenses. 
B) emergency fund. 
C) financial needs. 
D) liquid assets. 
E) annual income and approximate expenses, emergency fund, financial needs, and liquid assets. 
A) annual income and approximate expenses. 
B) emergency fund. 
C) financial needs. 
D) liquid assets. 
E) annual income and approximate expenses, emergency fund, financial needs, and liquid assets.

Question 14

The price that a company charges for a life insurance policy is affected by

Accepted Answer

A) the company's cost of doing business. 
B) inflation. 
C) the seasons. 
D) provincial regulations. 
E) federal regulations. 
A) the company's cost of doing business. 
B) inflation. 
C) the seasons. 
D) provincial regulations. 
E) federal regulations.

Question 15

Which type of life insurance plan requires you to pay premiums for a stipulated period, usually 20 or 30 years or until you reach a specified age?

Accepted Answer

A) modified life policy 
B) variable life policy 
C) adjustable life policy 
D) limited payment policy 
E) endowment policy 
A) modified life policy 
B) variable life policy 
C) adjustable life policy 
D) limited payment policy 
E) endowment policy

Question 16

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die, which type of insurance would provide money for your final medical costs?

Accepted Answer

A) Life insurance 
B) Critical illness insurance 
C) Professional insurance 
D) House insurance 
E) Long-term care 
A) Life insurance 
B) Critical illness insurance 
C) Professional insurance 
D) House insurance 
E) Long-term care

Question 17

A(n) _______ provides specified benefits regardless of whether the actual expenses are greater or less then the benefits.

Accepted Answer

A) medical expense policy 
B) comprehensive expense insurance 
C) interim expense insurance 
D) indemnity policy 
E) reimbursement policy 
A) medical expense policy 
B) comprehensive expense insurance 
C) interim expense insurance 
D) indemnity policy 
E) reimbursement policy

Question 18

What percentage of current income is used in the income replacement method?

Accepted Answer

A) 50% 
B) 60% 
C) 80% 
D) 30% 
E) 90% 
A) 50% 
B) 60% 
C) 80% 
D) 30% 
E) 90%

Question 19

Most health insurance policies issued by health and life insurance companies are sold to

Accepted Answer

A) victims of communicable diseases. 
B) individuals with families. 
C) single individuals with no dependents. 
D) Employees and their dependents. 
E) Employers, who in turn offer the benefits to employees. 
A) victims of communicable diseases. 
B) individuals with families. 
C) single individuals with no dependents. 
D) Employees and their dependents. 
E) Employers, who in turn offer the benefits to employees.

Question 20

Disability benefits begin on the first day you are disabled.

Accepted Answer

A) True 
 B)False

A factor that affects the cost of a life insurance policy is

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

The "free-look" period allows you to cancel your life insurance without penalty.

Critical illness benefits are paid

What is the maximum term for term life insurance?

Dental expense insurance provides reimbursement for

If inflation is 3% how many years will it take to decrease in value to less that 50% of the original value (use the closest 5 year time period)?

The premium for the whole life policy increases with your age.

Who has the greatest need for life insurance?

Group health insurance will cover you but not your immediate family.

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Generally, disability income policies with longer waiting periods

Which of the following items are required in calculating your life insurance need?

The price that a company charges for a life insurance policy is affected by

Which type of life insurance plan requires you to pay premiums for a stipulated period, usually 20 or 30 years or until you reach a specified age?

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die, which type of insurance would provide money for your final medical costs?

A(n) _______ provides specified benefits regardless of whether the actual expenses are greater or less then the benefits.

What percentage of current income is used in the income replacement method?

Most health insurance policies issued by health and life insurance companies are sold to

Disability benefits begin on the first day you are disabled.

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

A factor that affects the cost of a life insurance policy is

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

The "free-look" period allows you to cancel your life insurance without penalty.

Critical illness benefits are paid

What is the maximum term for term life insurance?

Dental expense insurance provides reimbursement for

If inflation is 3% how many years will it take to decrease in value to less that 50% of the original value (use the closest 5 year time period)?

The premium for the whole life policy increases with your age.

Who has the greatest need for life insurance?

Group health insurance will cover you but not your immediate family.

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Generally, disability income policies with longer waiting periods

Which of the following items are required in calculating your life insurance need?

The price that a company charges for a life insurance policy is affected by

Which type of life insurance plan requires you to pay premiums for a stipulated period, usually 20 or 30 years or until you reach a specified age?

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die, which type of insurance would provide money for your final medical costs?

A(n) _______ provides specified benefits regardless of whether the actual expenses are greater or less then the benefits.

What percentage of current income is used in the income replacement method?

Most health insurance policies issued by health and life insurance companies are sold to

Disability benefits begin on the first day you are disabled.

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