Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) education of children 
B) make charitable bequests after death 
C) pay off the mortgage on a home 
D) uncovered medical expenses and funeral costs 
E) all of the uses listed in the other answers 
A) education of children 
B) make charitable bequests after death 
C) pay off the mortgage on a home 
D) uncovered medical expenses and funeral costs 
E) all of the uses listed in the other answers

Question 5

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

Question 6

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

Accepted Answer

A) easy method. 
B) single-income method. 
C) DINK method. 
D) "nonworking" spouse methoD. 
E) "family need" method. 
A) easy method. 
B) single-income method. 
C) DINK method. 
D) "nonworking" spouse methoD. 
E) "family need" method.

Question 7

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

Accepted Answer

A) True 
 B)False

Question 8

Two basic types of life insurance are temporary and permanent insurance.

Accepted Answer

A) True 
 B)False

Question 9

When your life insurance objectives change,you should review the provisions in your policy before making any decisions regarding the policy.

Accepted Answer

A) True 
 B)False

Question 10

Consumer awareness of life insurance has changed little over the years.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Which is a correct statement about life insurance?

Accepted Answer

A) People are less apt to actively seek life insurance than health insurance. 
B) Private sources are the only available sources for life insurance. 
C) Life insurance is extremely important if you are single and living alone. 
D) There is only one type of life insurance. 
E) Consumer awareness of life insurance has changed considerably over the years. 
A) People are less apt to actively seek life insurance than health insurance. 
B) Private sources are the only available sources for life insurance. 
C) Life insurance is extremely important if you are single and living alone. 
D) There is only one type of life insurance. 
E) Consumer awareness of life insurance has changed considerably over the years.

Question 13

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is the money that is returned to Jane called?

Accepted Answer

A) Cash Value 
B) Policy Dividend 
C) Beneficiary 
D) Rider 
E) Double Indemnity 
A) Cash Value 
B) Policy Dividend 
C) Beneficiary 
D) Rider 
E) Double Indemnity

Question 14

The lump-sum payment settlement option is the least used option.

Accepted Answer

A) True 
 B)False

Question 15

The second-to-die option is paid when the first spouse dies.

Accepted Answer

A) True 
 B)False

Question 16

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 17

The premium that is refunded to holders of a participating policy is called the policy dividend.

Accepted Answer

A) True 
 B)False

Question 18

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

Accepted Answer

A) hard method 
B) easy method 
C) "nonworking" spouse method 
D) thorough method 
E) DINK method 
A) hard method 
B) easy method 
C) "nonworking" spouse method 
D) thorough method 
E) DINK method

Question 19

You probably have little or no need for life insurance if you are:

Accepted Answer

A) a single person living alone or with parents. 
B) divorced and have two children. 
C) married and your spouse works. 
D) gainfully employeD. 
E) a household with several children. 
A) a single person living alone or with parents. 
B) divorced and have two children. 
C) married and your spouse works. 
D) gainfully employeD. 
E) a household with several children.

Question 20

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

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

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

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

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

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

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

Two basic types of life insurance are temporary and permanent insurance.

When your life insurance objectives change,you should review the provisions in your policy before making any decisions regarding the policy.

Consumer awareness of life insurance has changed little over the years.

The 2001 CSO Table separates the mortality experience by:

Which is a correct statement about life insurance?

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is the money that is returned to Jane called?

The lump-sum payment settlement option is the least used option.

The second-to-die option is paid when the first spouse dies.

Which type of insurance is sometimes called temporary insurance?

The premium that is refunded to holders of a participating policy is called the policy dividend.

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

You probably have little or no need for life insurance if you are:

Who has the greatest need for life insurance?

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

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

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

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

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

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

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

Two basic types of life insurance are temporary and permanent insurance.

When your life insurance objectives change,you should review the provisions in your policy before making any decisions regarding the policy.

Consumer awareness of life insurance has changed little over the years.

The 2001 CSO Table separates the mortality experience by:

Which is a correct statement about life insurance?

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is the money that is returned to Jane called?

The lump-sum payment settlement option is the least used option.

The second-to-die option is paid when the first spouse dies.

Which type of insurance is sometimes called temporary insurance?

The premium that is refunded to holders of a participating policy is called the policy dividend.

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

You probably have little or no need for life insurance if you are:

Who has the greatest need for life insurance?

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