Question 1

Which of the following attributes would not be used by an Underwriter to determine the appropriate premiums to charge for insurance?

Accepted Answer

A)  Marital status 
B)  Gender 
C)  Health 
D)  Age 
E)  Occupation 
A)  Marital status 
B)  Gender 
C)  Health 
D)  Age 
E)  Occupation

Question 2

An important provision in every life insurance policy is the right to name your beneficiary.

Accepted Answer

A) True 
 B)False

Question 3

Which statement is correct about whole life insurance?

Accepted Answer

A)  It is cheaper than term life. 
B)  It builds up cash value. 
C)  The premiums increase with your age. 
D)  It is the best choice for most people. 
E)  It is the same thing as term life insurance. 
A)  It is cheaper than term life. 
B)  It builds up cash value. 
C)  The premiums increase with your age. 
D)  It is the best choice for most people. 
E)  It is the same thing as term life insurance.

Question 4

If your insurance agent does not give you an interest-adjusted index, your best bet is to:

Accepted Answer

A)  buy the policy anyway. 
B)  look for another agent. 
C)  tell the agent that you are still thinking. 
D)  tell the agent you will buy it later. 
E)  complain to the Better Business Bureau. 
A)  buy the policy anyway. 
B)  look for another agent. 
C)  tell the agent that you are still thinking. 
D)  tell the agent you will buy it later. 
E)  complain to the Better Business Bureau.

Question 5

Who has the greatest need for life insurance?

Accepted Answer

A)  Households with small children 
B)  Singles living alone 
C)  Singles living with parents 
D)  Dual income couple 
E)  Children 
A)  Households with small children 
B)  Singles living alone 
C)  Singles living with parents 
D)  Dual income couple 
E)  Children

Question 6

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

Accepted Answer

A)  double indemnity. 
B)  guaranteed insurability. 
C)  an interest-adjusted index. 
D)  the consumer price index. 
E)  a present value index. 
A)  double indemnity. 
B)  guaranteed insurability. 
C)  an interest-adjusted index. 
D)  the consumer price index. 
E)  a present value index.

Question 7

The premium for a whole life policy remains constant for as long as an insured lives.

Accepted Answer

A) True 
 B)False

Question 8

Group life and credit life insurance are generally permanent forms of insurance.

Accepted Answer

A) True 
 B)False

Question 9

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination. Once it has been exchanged, the premiums will increase. What type of term life insurance does Frank likely have?

Accepted Answer

A)  Straight 
B)  Renewable 
C)  Convertible 
D)  Decreasing 
E)  Accelerated 
A)  Straight 
B)  Renewable 
C)  Convertible 
D)  Decreasing 
E)  Accelerated

Question 10

Which type of insurance is sometimes called temporary insurance?

Accepted Answer

A)  Whole life insurance 
B)  Term insurance 
C)  Straight life 
D)  Ordinary life 
E)  Modified life 
A)  Whole life insurance 
B)  Term insurance 
C)  Straight life 
D)  Ordinary life 
E)  Modified life

Question 11

Subject to certain minimums, which life insurance is designed to let you pay premiums at any time in virtually any amount?

Accepted Answer

A)  Whole life 
B)  Ordinary life 
C)  Universal life 
D)  Adjustable life 
E)  Variable life 
A)  Whole life 
B)  Ordinary life 
C)  Universal life 
D)  Adjustable life 
E)  Variable life

Question 12

The 2001 CSO Table separates the mortality experience by:

Accepted Answer

A)  age. 
B)  income level. 
C)  occupation. 
D)  domicile. 
E)  sex. 
A)  age. 
B)  income level. 
C)  occupation. 
D)  domicile. 
E)  sex.

Question 13

Universal life is a whole life policy that combines term insurance and investment elements.

Accepted Answer

A) True 
 B)False

Question 14

You can purchase life insurance from two types of insurance companies.

Accepted Answer

A) True 
 B)False

Question 15

A prime reason for buying an annuity is to:

Accepted Answer

A)  save money for a college education. 
B)  start a new business. 
C)  accumulate funds to invest in stocks. 
D)  give you retirement income for the rest of your life. 
E)  get rich quick. 
A)  save money for a college education. 
B)  start a new business. 
C)  accumulate funds to invest in stocks. 
D)  give you retirement income for the rest of your life. 
E)  get rich quick.

Question 16

How much insurance one should carry is an important question for anyone who owns or intends to buy life insurance.

Accepted Answer

A) True 
 B)False

Question 17

List some of the important provisions found in most life insurance policies.

Accepted Answer

The naming of the beneficiary, the grace

Question 18

The easy method of determining life insurance requirements assumes that your family is:

Accepted Answer

A)  rich. 
B)  poor. 
C)  typical. 
D)  young. 
E)  old. 
A)  rich. 
B)  poor. 
C)  typical. 
D)  young. 
E)  old.

Question 19

What is life insurance? What is its purpose and principle?

Accepted Answer

Life insurance is a contract between an

Question 20

A chartered life underwriter (CLU) is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Accepted Answer

A) True 
 B)False

Which of the following attributes would not be used by an Underwriter to determine the appropriate premiums to charge for insurance?

An important provision in every life insurance policy is the right to name your beneficiary.

Which statement is correct about whole life insurance?

If your insurance agent does not give you an interest-adjusted index, your best bet is to:

Who has the greatest need for life insurance?

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

The premium for a whole life policy remains constant for as long as an insured lives.

Group life and credit life insurance are generally permanent forms of insurance.

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination. Once it has been exchanged, the premiums will increase. What type of term life insurance does Frank likely have?

Which type of insurance is sometimes called temporary insurance?

Subject to certain minimums, which life insurance is designed to let you pay premiums at any time in virtually any amount?

The 2001 CSO Table separates the mortality experience by:

Universal life is a whole life policy that combines term insurance and investment elements.

You can purchase life insurance from two types of insurance companies.

A prime reason for buying an annuity is to:

How much insurance one should carry is an important question for anyone who owns or intends to buy life insurance.

List some of the important provisions found in most life insurance policies.

The easy method of determining life insurance requirements assumes that your family is:

What is life insurance? What is its purpose and principle?

A chartered life underwriter (CLU) is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 12: Life Insurance

Which of the following attributes would not be used by an Underwriter to determine the appropriate premiums to charge for insurance?

An important provision in every life insurance policy is the right to name your beneficiary.

Which statement is correct about whole life insurance?

If your insurance agent does not give you an interest-adjusted index, your best bet is to:

Who has the greatest need for life insurance?

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

The premium for a whole life policy remains constant for as long as an insured lives.

Group life and credit life insurance are generally permanent forms of insurance.

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination. Once it has been exchanged, the premiums will increase. What type of term life insurance does Frank likely have?

Which type of insurance is sometimes called temporary insurance?

Subject to certain minimums, which life insurance is designed to let you pay premiums at any time in virtually any amount?

The 2001 CSO Table separates the mortality experience by:

Universal life is a whole life policy that combines term insurance and investment elements.

You can purchase life insurance from two types of insurance companies.

A prime reason for buying an annuity is to:

How much insurance one should carry is an important question for anyone who owns or intends to buy life insurance.

List some of the important provisions found in most life insurance policies.

The easy method of determining life insurance requirements assumes that your family is:

What is life insurance? What is its purpose and principle?

A chartered life underwriter (CLU) is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters