Question 1

Single persons living alone have little or no need for life insurance.

Accepted Answer

A) True 
 B)False

Question 2

Because you are young and healthy now, you may overlook the very real need for

Accepted Answer

A) Disability income insurance. 
B) health insurance. 
C) Dental insurance. 
D) vision care insurance. 
E) liability insurance. 
A) Disability income insurance. 
B) health insurance. 
C) Dental insurance. 
D) vision care insurance. 
E) liability insurance.

Question 3

A participating life insurance policy has

Accepted Answer

A) lower premiums than a nonparticipating policy. 
B) about the same premium as the nonparticipating policy. 
C) been declared illegal in many states. 
D) somewhat higher premiums than nonparticipating policy. 
E) has no potential for earning dividends. 
A) lower premiums than a nonparticipating policy. 
B) about the same premium as the nonparticipating policy. 
C) been declared illegal in many states. 
D) somewhat higher premiums than nonparticipating policy. 
E) has no potential for earning dividends.

Question 4

The whole life policy is an insurance plan for which the policyholder

Accepted Answer

A) pays a specified premium each year for as long as he or she lives 
B) is also called a straight life policy 
C) is also called a cash-value life policy 
D) is also called an ordinary life policy 
E) all the answers are correct 
A) pays a specified premium each year for as long as he or she lives 
B) is also called a straight life policy 
C) is also called a cash-value life policy 
D) is also called an ordinary life policy 
E) all the answers are correct

Question 5

A good supplemental health and disability insurance plan should

Accepted Answer

A) offer basic coverage for hospital costs. 
B) provide for prescription drug cost not covered by your provincial plan. 
C) provide for dental maintenance including dentures and oral surgery. 
D) include vision care insurance. 
E) offer basic coverage for hospital costs, provide for prescription drug cost not covered by your provincial plan, provide for dental maintenance including dentures and oral surgery, and include vision care insurance. 
A) offer basic coverage for hospital costs. 
B) provide for prescription drug cost not covered by your provincial plan. 
C) provide for dental maintenance including dentures and oral surgery. 
D) include vision care insurance. 
E) offer basic coverage for hospital costs, provide for prescription drug cost not covered by your provincial plan, provide for dental maintenance including dentures and oral surgery, and include vision care insurance.

Question 6

The premium for noncancelable and guaranteed renewable coverage is higher, but the coverages are well worth the extra cost.

Accepted Answer

A) True 
 B)False

Question 7

Critical illness benefits are usually added by riders to new or existing policies.

Accepted Answer

A) True 
 B)False

Question 8

A basic supplementary health and disability insurance plan should

Accepted Answer

A) provide at least one year's hospital room and board in full. 
B) provide at least $2 million lifetime maximum for each family member. 
C) pay 100 percent for out-of-hospital expenses. 
D) include hospital costs, supplementary prescription drug charges, and dental maintenance. 
E) include vision care insurance. 
A) provide at least one year's hospital room and board in full. 
B) provide at least $2 million lifetime maximum for each family member. 
C) pay 100 percent for out-of-hospital expenses. 
D) include hospital costs, supplementary prescription drug charges, and dental maintenance. 
E) include vision care insurance.

Question 9

Critical illness insurance does not usually cover __________________.

Accepted Answer

A) cancer 
B) stroke 
C) HIV/AIDS 
D) blindness 
E) organ transplant 
A) cancer 
B) stroke 
C) HIV/AIDS 
D) blindness 
E) organ transplant

Question 10

Basic health insurance coverage should include hospital costs, supplementary prescription drug charges, and dental maintenance.

Accepted Answer

A) True 
 B)False

Question 11

Of all life insurance applicants, _________ percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition

Accepted Answer

A) 50 
B) 62 
C) 86 
D) 98 
E) 100 
A) 50 
B) 62 
C) 86 
D) 98 
E) 100

Question 12

Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.

Accepted Answer

A) True 
 B)False

Question 13

What factors should you consider before you buy insurance?

Accepted Answer

A) your present and future sources of income 
B) your savings 
C) group life insurance 
D) pension benefits 
E) your present and future sources of income, your savings, group life insurance, and pension benefits. 
A) your present and future sources of income 
B) your savings 
C) group life insurance 
D) pension benefits 
E) your present and future sources of income, your savings, group life insurance, and pension benefits.

Question 14

Ages 15 to 24 have what percentage of disabilities?

Accepted Answer

A) 4.4% 
B) 6.5% 
C) 10.1% 
D) 16.1% 
E) 2.2% 
A) 4.4% 
B) 6.5% 
C) 10.1% 
D) 16.1% 
E) 2.2%

Question 15

Which of the following is not an important trade off in purchasing disability income insurance?

Accepted Answer

A) waiting period 
B) amount of down-payment 
C) duration of benefit. 
D) accident and sickness coverage. 
E) guaranteed renewability. 
A) waiting period 
B) amount of down-payment 
C) duration of benefit. 
D) accident and sickness coverage. 
E) guaranteed renewability.

Question 16

Suicide clause means that the insurance company

Accepted Answer

A) can cancel the policy if age has been misstated. 
B) will pay the death benefit equal to the amount of the premium paid, if the insured dies during the first two years that the policy is in force. 
C) allows the insured to pay premiums in installments. 
D) automatically pays the premium out of the policy's cash value. 
A) can cancel the policy if age has been misstated. 
B) will pay the death benefit equal to the amount of the premium paid, if the insured dies during the first two years that the policy is in force. 
C) allows the insured to pay premiums in installments. 
D) automatically pays the premium out of the policy's cash value.

Question 17

In choosing supplemental health and disability insurance, ideally, you should

Accepted Answer

A) get a basic plan with a major supplementary plan. 
B) get dental and vision plans. 
C) buy dread disease and cancer insurance plans. 
D) purchase nursing home insurance. 
E) purchase accident insurance. 
A) get a basic plan with a major supplementary plan. 
B) get dental and vision plans. 
C) buy dread disease and cancer insurance plans. 
D) purchase nursing home insurance. 
E) purchase accident insurance.

Question 18

Your second step in determining a life insurance program should be to

Accepted Answer

A) consult a local insurance company agent. 
B) consider whether you wish to leave your dependents debt free 
C) estimate your life insurance requirements. 
D) determine your life insurance objectives. 
E) evaluate the ratings of the insurance company. 
A) consult a local insurance company agent. 
B) consider whether you wish to leave your dependents debt free 
C) estimate your life insurance requirements. 
D) determine your life insurance objectives. 
E) evaluate the ratings of the insurance company.

Question 19

Which of the following is the most 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 20

A plan that insures a large number of persons under the terms of a single policy without a medical examination is called a(n) ____________ life insurance policy plan.

Accepted Answer

A) individual 
B) whole 
C) large number 
D) permanent 
E) group 
A) individual 
B) whole 
C) large number 
D) permanent 
E) group

Single persons living alone have little or no need for life insurance.

Because you are young and healthy now, you may overlook the very real need for

A participating life insurance policy has

The whole life policy is an insurance plan for which the policyholder

A good supplemental health and disability insurance plan should

The premium for noncancelable and guaranteed renewable coverage is higher, but the coverages are well worth the extra cost.

Critical illness benefits are usually added by riders to new or existing policies.

A basic supplementary health and disability insurance plan should

Critical illness insurance does not usually cover __________________.

Basic health insurance coverage should include hospital costs, supplementary prescription drug charges, and dental maintenance.

Of all life insurance applicants, _________ percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition

Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.

What factors should you consider before you buy insurance?

Ages 15 to 24 have what percentage of disabilities?

Which of the following is not an important trade off in purchasing disability income insurance?

Suicide clause means that the insurance company

In choosing supplemental health and disability insurance, ideally, you should

Your second step in determining a life insurance program should be to

Which of the following is the most common settlement option?

A plan that insures a large number of persons under the terms of a single policy without a medical examination is called a(n) ____________ life insurance policy plan.

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

Single persons living alone have little or no need for life insurance.

Because you are young and healthy now, you may overlook the very real need for

A participating life insurance policy has

The whole life policy is an insurance plan for which the policyholder

A good supplemental health and disability insurance plan should

The premium for noncancelable and guaranteed renewable coverage is higher, but the coverages are well worth the extra cost.

Critical illness benefits are usually added by riders to new or existing policies.

A basic supplementary health and disability insurance plan should

Critical illness insurance does not usually cover __________________.

Basic health insurance coverage should include hospital costs, supplementary prescription drug charges, and dental maintenance.

Of all life insurance applicants, _________ percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition

Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.

What factors should you consider before you buy insurance?

Ages 15 to 24 have what percentage of disabilities?

Which of the following is not an important trade off in purchasing disability income insurance?

Suicide clause means that the insurance company

In choosing supplemental health and disability insurance, ideally, you should

Your second step in determining a life insurance program should be to

Which of the following is the most common settlement option?

A plan that insures a large number of persons under the terms of a single policy without a medical examination is called a(n) ____________ life insurance policy plan.

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