Question 1

Insurance companies use _____ to determine whom they will insure and what they will charge for the coverage.

Accepted Answer

A) Social Security survivor's benefits 
B) the needs analysis method 
C) underwriting 
D) risk assumption 
E) loss control 
A) Social Security survivor's benefits 
B) the needs analysis method 
C) underwriting 
D) risk assumption 
E) loss control

Question 2

___________ is an effective way to handle small exposures to loss when insurance is too expensive. ​

Accepted Answer

A) Loss assumption 
B) Risk assumption 
C) Risk prevention 
D) Loss control 
A) Loss assumption 
B) Risk assumption 
C) Risk prevention 
D) Loss control

Question 3

Insurance agents always disclose their commissions in an insurance policy.

Accepted Answer

A) True 
 B)False

Question 4

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time.However,you feel you will need life insurance for the rest of your life.You should choose a _____ insurance.

Accepted Answer

A) continuous premium whole life 
B) limited payment whole life 
C) single premium whole life 
D) renewable premium whole life 
E) convertible whole life 
A) continuous premium whole life 
B) limited payment whole life 
C) single premium whole life 
D) renewable premium whole life 
E) convertible whole life

Question 5

___________ is an activity that reduces the chance that a loss will occur. ​

Accepted Answer

A) loss control 
B) risk transfer 
C) loss prevention 
D) risk avoidance 
A) loss control 
B) risk transfer 
C) loss prevention 
D) risk avoidance

Question 6

Risk avoidance is attractive when the cost of avoidance is less than the cost of handling it some other way.

Accepted Answer

A) True 
 B)False

Question 7

By ___________,insurance companies decide who will be insured by them. ​

Accepted Answer

A) loss prevention 
B) risk assumption 
C) underwriting 
D) needs analysis 
A) loss prevention 
B) risk assumption 
C) underwriting 
D) needs analysis

Question 8

A life insurance agent who takes her profession seriously is likely to have earned a professional certification like the ___________. ​

Accepted Answer

A) Chartered Financial Analyst 
B) Chartered Life Underwriter 
C) Chartered Financial Advisor 
D) Certified Insurance Agent 
A) Chartered Financial Analyst 
B) Chartered Life Underwriter 
C) Chartered Financial Advisor 
D) Certified Insurance Agent

Question 9

The insurance portion of a universal life policy is most analogous to:

Accepted Answer

A) mortgage insurance. 
B) group insurance. 
C) whole life insurance. 
D) term insurance. 
E) variable insurance. 
A) mortgage insurance. 
B) group insurance. 
C) whole life insurance. 
D) term insurance. 
E) variable insurance.

Question 10

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy,he will receive the cash value.His plan is a _____ policy.

Accepted Answer

A) term life 
B) continuous whole life 
C) limited payment whole life 
D) viatical life 
E) group life insurance 
A) term life 
B) continuous whole life 
C) limited payment whole life 
D) viatical life 
E) group life insurance

Question 11

Which of the following is a characteristic of a universal life insurance policy?

Accepted Answer

A) No flexible premiums 
B) No choice in how the accumulation account is invested 
C) Absence of a savings feature 
D) Fixed premiums and protection levels 
E) Lighter fees than other insurance policies 
A) No flexible premiums 
B) No choice in how the accumulation account is invested 
C) Absence of a savings feature 
D) Fixed premiums and protection levels 
E) Lighter fees than other insurance policies

Question 12

The purchase of insurance is a common form of _____ by the insured.

Accepted Answer

A) loss prevention 
B) risk transfer 
C) risk assumption 
D) risk avoidance 
E) loss control 
A) loss prevention 
B) risk transfer 
C) risk assumption 
D) risk avoidance 
E) loss control

Question 13

The underwriting function of insurance companies is designed to ensure that premiums are based on_____.

Accepted Answer

A) income levels 
B) the value of losses 
C) the value of gains 
D) the chance of losses 
E) expense levels 
A) income levels 
B) the value of losses 
C) the value of gains 
D) the chance of losses 
E) expense levels

Question 14

Underwriters use life expectancy figures to look at overall longevity for various age groups and also consider specific factors related to an applicant's health,habits,and experiences.

Accepted Answer

A) True 
 B)False

Question 15

A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary,which means that _____.

Accepted Answer

A) the life insurance proceeds are paid directly to named beneficiaries after payment of state or federal income taxes 
B) the cash benefits from your life insurance policy cannot be claimed by creditors 
C) the life insurance proceeds are invested as premiums for the life insurance of the beneficiary 
D) the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes 
E) the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably 
A) the life insurance proceeds are paid directly to named beneficiaries after payment of state or federal income taxes 
B) the cash benefits from your life insurance policy cannot be claimed by creditors 
C) the life insurance proceeds are invested as premiums for the life insurance of the beneficiary 
D) the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes 
E) the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably

Question 16

A(n)_____ policy is a contract between an individual and a company under which the company agrees to reimburse the individual for losses suffered by him or her according to specified terms.

Accepted Answer

A) underwriting 
B) risk 
C) insurance 
D) debt 
E) reimbursement 
A) underwriting 
B) risk 
C) insurance 
D) debt 
E) reimbursement

Question 17

Term life insurance is characterized by _____.

Accepted Answer

A) level annual premiums throughout one's life 
B) premium amounts related to the age of the insureds 
C) its inappropriateness for most people's life insurance needs 
D) non-convertibility 
E) cash value accumulation 
A) level annual premiums throughout one's life 
B) premium amounts related to the age of the insureds 
C) its inappropriateness for most people's life insurance needs 
D) non-convertibility 
E) cash value accumulation

Question 18

Nonforfeiture rights guarantee that a policy owner will not lose his or her policy's _____.

Accepted Answer

A) face value 
B) death benefits for survivors 
C) cash value 
D) premium refunds 
E) premium reductions 
A) face value 
B) death benefits for survivors 
C) cash value 
D) premium refunds 
E) premium reductions

Question 19

The probability of a loss occurring can be reduced by_____.

Accepted Answer

A) risk observance 
B) loss prevention 
C) risk assumption 
D) loss retention 
E) insurance 
A) risk observance 
B) loss prevention 
C) risk assumption 
D) loss retention 
E) insurance

Question 20

Insurance companies use actuarial data to measure:

Accepted Answer

A) the creditworthiness of a given population. 
B) the risk of loss for a given population. 
C) the wealth of a given population. 
D) the gross productivity of a given population. 
E) the consumer price index of a given population. 
A) the creditworthiness of a given population. 
B) the risk of loss for a given population. 
C) the wealth of a given population. 
D) the gross productivity of a given population. 
E) the consumer price index of a given population.

Insurance companies use _____ to determine whom they will insure and what they will charge for the coverage.

___________ is an effective way to handle small exposures to loss when insurance is too expensive.

Insurance agents always disclose their commissions in an insurance policy.

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time.However,you feel you will need life insurance for the rest of your life.You should choose a _____ insurance.

___________ is an activity that reduces the chance that a loss will occur.

Risk avoidance is attractive when the cost of avoidance is less than the cost of handling it some other way.

By ___________,insurance companies decide who will be insured by them.

A life insurance agent who takes her profession seriously is likely to have earned a professional certification like the ___________.

The insurance portion of a universal life policy is most analogous to:

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy,he will receive the cash value.His plan is a _____ policy.

Which of the following is a characteristic of a universal life insurance policy?

The purchase of insurance is a common form of _____ by the insured.

The underwriting function of insurance companies is designed to ensure that premiums are based on_____.

Underwriters use life expectancy figures to look at overall longevity for various age groups and also consider specific factors related to an applicant's health,habits,and experiences.

A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary,which means that _____.

A(n)_____ policy is a contract between an individual and a company under which the company agrees to reimburse the individual for losses suffered by him or her according to specified terms.

Term life insurance is characterized by _____.

Nonforfeiture rights guarantee that a policy owner will not lose his or her policy's _____.

The probability of a loss occurring can be reduced by_____.

Insurance companies use actuarial data to measure:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 8: Insuring Your Life

Insurance companies use _____ to determine whom they will insure and what they will charge for the coverage.

___________ is an effective way to handle small exposures to loss when insurance is too expensive. ​

Insurance agents always disclose their commissions in an insurance policy.

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time.However,you feel you will need life insurance for the rest of your life.You should choose a _____ insurance.

___________ is an activity that reduces the chance that a loss will occur. ​

Risk avoidance is attractive when the cost of avoidance is less than the cost of handling it some other way.

By ___________,insurance companies decide who will be insured by them. ​

A life insurance agent who takes her profession seriously is likely to have earned a professional certification like the ___________. ​

The insurance portion of a universal life policy is most analogous to:

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy,he will receive the cash value.His plan is a _____ policy.

Which of the following is a characteristic of a universal life insurance policy?

The purchase of insurance is a common form of _____ by the insured.

The underwriting function of insurance companies is designed to ensure that premiums are based on_____.

Underwriters use life expectancy figures to look at overall longevity for various age groups and also consider specific factors related to an applicant's health,habits,and experiences.

A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary,which means that _____.

A(n)_____ policy is a contract between an individual and a company under which the company agrees to reimburse the individual for losses suffered by him or her according to specified terms.

Term life insurance is characterized by _____.

Nonforfeiture rights guarantee that a policy owner will not lose his or her policy's _____.

The probability of a loss occurring can be reduced by_____.

Insurance companies use actuarial data to measure:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

___________ is an effective way to handle small exposures to loss when insurance is too expensive.

___________ is an activity that reduces the chance that a loss will occur.

By ___________,insurance companies decide who will be insured by them.

A life insurance agent who takes her profession seriously is likely to have earned a professional certification like the ___________.