Question 1

The easy method of determining life insurance needs 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. C

Question 2

Which statement is correct regarding stock life insurance companies?

Accepted Answer

A) A stock company sells participating policies. 
B) A stock company always charges higher premiums than mutual companies. 
C) A stockholder receives a policy dividend. 
D) A stock company generally sells nonparticipating policies. 
E) A stock company is owned by policyholders. 
A) A stock company sells participating policies. 
B) A stock company always charges higher premiums than mutual companies. 
C) A stockholder receives a policy dividend. 
D) A stock company generally sells nonparticipating policies. 
E) A stock company is owned by policyholders. D

Question 3

Most participating policies are sold by:

Accepted Answer

A) federal government agencies. 
B) state insurance commissioners. 
C) mutual life insurance companies. 
D) stock life insurance companies. 
E) investment banks. 
A) federal government agencies. 
B) state insurance commissioners. 
C) mutual life insurance companies. 
D) stock life insurance companies. 
E) investment banks. C

Question 4

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

Accepted Answer

A) Cash Value 
B) Par 
C) Policy dividend 
D) Rider 
E) Double Indemnity 
A) Cash Value 
B) Par 
C) Policy dividend 
D) Rider 
E) Double Indemnity

Question 5

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 6

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A beneficiary is a person designated to receive something,such as life insurance proceeds,from the insured.

Accepted Answer

A) True 
 B)False

Question 9

Your annual income is $50,000.What is your life insurance need based on the easy method?

Accepted Answer

A) $245,000 
B) $300,000 
C) $345,000 
D) $400,000 
E) $450,000 
A) $245,000 
B) $300,000 
C) $345,000 
D) $400,000 
E) $450,000

Question 10

Which of the following is a popular app for estimating life insurance needs?

Accepted Answer

A) www.Kiplinger.com/insurance 
B) Human Life Value Calculator 
C) money.msn.com 
D) www.nerdwallet.com/life-insurance 
E) www.familyneeds.com 
A) www.Kiplinger.com/insurance 
B) Human Life Value Calculator 
C) money.msn.com 
D) www.nerdwallet.com/life-insurance 
E) www.familyneeds.com

Question 11

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are common uses of life insurance proceeds?

Accepted Answer

A) provide an education for children 
B) set up an estate plan 
C) establish a regular income for survivors 
D) accumulate savings 
E) All of these are common uses. 
A) provide an education for children 
B) set up an estate plan 
C) establish a regular income for survivors 
D) accumulate savings 
E) All of these are common uses.

Question 13

The premium for a whole life insurance policy remains constant:

Accepted Answer

A) throughout your lifetime. 
B) during the first year of the policy. 
C) during the first five years of the policy. 
D) only through age 55. 
E) only through age 69. 
A) throughout your lifetime. 
B) during the first year of the policy. 
C) during the first five years of the policy. 
D) only through age 55. 
E) only through age 69.

Question 14

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following life insurance policies has a cash value feature:

Accepted Answer

A) Term life 
B) Group life 
C) Credit life 
D) Whole life 
E) Convertible term 
A) Term life 
B) Group life 
C) Credit life 
D) Whole life 
E) Convertible term

Question 16

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources,how companies are compared,and what kind of agent to use.

Accepted Answer

Before buying life insurance,you should

Question 17

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

Accepted Answer

A) True 
 B)False

Question 18

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

Accepted Answer

A) Dow Jones amp; Company. 
B) Standard amp; Poor's. 
C) Moody's Rating Service. 
D) A.M.Best Company. 
E) Weiss Research. 
A) Dow Jones amp; Company. 
B) Standard amp; Poor's. 
C) Moody's Rating Service. 
D) A.M.Best Company. 
E) Weiss Research.

Question 19

In the 1950s,the life insurance industry developed:

Accepted Answer

A) the forces of supply and demand. 
B) the insurance division of the federal government. 
C) the forces of competition. 
D) mortality tables. 
E) the principle of life insurance. 
A) the forces of supply and demand. 
B) the insurance division of the federal government. 
C) the forces of competition. 
D) mortality tables. 
E) the principle of life insurance.

Question 20

Which type of life insurance policy is growing in popularity,because the policyholder pays the same premium amount for the life of the policy?

Accepted Answer

A) whole life 
B) multiyear term life 
C) decreasing term 
D) return-of-premium term 
E) convertible term 
A) whole life 
B) multiyear term life 
C) decreasing term 
D) return-of-premium term 
E) convertible term

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

Which statement is correct regarding stock life insurance companies?

Most participating policies are sold by:

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

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

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

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

A beneficiary is a person designated to receive something,such as life insurance proceeds,from the insured.

Your annual income is $50,000.What is your life insurance need based on the easy method?

Which of the following is a popular app for estimating life insurance needs?

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Which of the following are common uses of life insurance proceeds?

The premium for a whole life insurance policy remains constant:

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Which of the following life insurance policies has a cash value feature:

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources,how companies are compared,and what kind of agent to use.

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

In the 1950s,the life insurance industry developed:

Which type of life insurance policy is growing in popularity,because the policyholder pays the same premium amount for the life of the policy?

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 Stock

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

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

Which statement is correct regarding stock life insurance companies?

Most participating policies are sold by:

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

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

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

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

A beneficiary is a person designated to receive something,such as life insurance proceeds,from the insured.

Your annual income is $50,000.What is your life insurance need based on the easy method?

Which of the following is a popular app for estimating life insurance needs?

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Which of the following are common uses of life insurance proceeds?

The premium for a whole life insurance policy remains constant:

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Which of the following life insurance policies has a cash value feature:

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources,how companies are compared,and what kind of agent to use.

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

In the 1950s,the life insurance industry developed:

Which type of life insurance policy is growing in popularity,because the policyholder pays the same premium amount for the life of the policy?

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters