Question 1

Underwriters can predict whether or not you will suffer a loss this year.

Accepted Answer

A) True 
 B)False

Question 2

Term insurance is generally the most economical form of life insurance for young families.

Accepted Answer

A) True 
 B)False

Question 3

Credit life insurance is often a legal requirement when you buy something on credit.

Accepted Answer

A) True 
 B)False

Question 4

Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on.He has purchased a face value of $100,000 and can accumulate cash value.What type of life insurance has Kurt purchased?

Accepted Answer

A)  universal life 
B)  whole life 
C)  modified whole life 
D)  term life 
E)  adjustable whole life 
A)  universal life 
B)  whole life 
C)  modified whole life 
D)  term life 
E)  adjustable whole life

Question 5

Which type of settlement option pays for over a predetermined time frame?

Accepted Answer

A)  Lump sum 
B)  Interest only 
C)  Lifetime income 
D)  Fixed period 
E)  Fixed amount 
A)  Lump sum 
B)  Interest only 
C)  Lifetime income 
D)  Fixed period 
E)  Fixed amount

Question 6

When you stop making premium payments on a whole life policy,the protection is immediately forfeited.

Accepted Answer

A) True 
 B)False

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Social Security survivors' benefits typically provide benefits for children through [high school | college].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A life insurance policy should contain which of the following? [policy description | co-insurance clause].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

Life insurance designed to pay the balance on a mortgage is an example of a good use decreasing term policy.

Accepted Answer

A) True 
 B)False

Question 10

In determining available resources to offset economic needs,you would generally not consider

Accepted Answer

A)  social security benefits. 
B)  earning potential of financially independent children. 
C)  earning potential of surviving spouse. 
D)  savings. 
E)  employer-provided group life insurance. 
A)  social security benefits. 
B)  earning potential of financially independent children. 
C)  earning potential of surviving spouse. 
D)  savings. 
E)  employer-provided group life insurance.

Question 11

Multiple indemnity policies should be ignored as a source of funds when determining insurance needs because it offers no protection if the insured's death is due to natural causes.

Accepted Answer

A) True 
 B)False

Question 12

The settlement option chosen by most beneficiaries is

Accepted Answer

A)  lump sum. 
B)  interest only. 
C)  fixed amount. 
D)  fixed time. 
E)  life income. 
A)  lump sum. 
B)  interest only. 
C)  fixed amount. 
D)  fixed time. 
E)  life income.

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Group insurance is most likely to be [term | whole life].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 14

The primary purpose of life insurance is to provide

Accepted Answer

A)  financial security for dependents in the event of death. 
B)  protection from creditors and lawsuits. 
C)  tax-advantaged investments. 
D)  high-yield investments. 
E)  all of the above. 
A)  financial security for dependents in the event of death. 
B)  protection from creditors and lawsuits. 
C)  tax-advantaged investments. 
D)  high-yield investments. 
E)  all of the above.

Question 15

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

Accepted Answer

A) True 
 B)False

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The premium on your term insurance will [increase | stay the same] with each renewal.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 17

Generally,the period-certain settlement option is desirable because life insurance companies pay higher than average interest rates.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The majority of term policies have a [level | decreasing] face value.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

The purchase of insurance is a common form of which risk management technique:

Accepted Answer

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

Underwriters can predict whether or not you will suffer a loss this year.

Term insurance is generally the most economical form of life insurance for young families.

Credit life insurance is often a legal requirement when you buy something on credit.

Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on.He has purchased a face value of $100,000 and can accumulate cash value.What type of life insurance has Kurt purchased?

Which type of settlement option pays for over a predetermined time frame?

When you stop making premium payments on a whole life policy,the protection is immediately forfeited.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Social Security survivors' benefits typically provide benefits for children through [high school | college].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A life insurance policy should contain which of the following? [policy description | co-insurance clause].

Life insurance designed to pay the balance on a mortgage is an example of a good use decreasing term policy.

In determining available resources to offset economic needs,you would generally not consider

Multiple indemnity policies should be ignored as a source of funds when determining insurance needs because it offers no protection if the insured's death is due to natural causes.

The settlement option chosen by most beneficiaries is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Group insurance is most likely to be [term | whole life].

The primary purpose of life insurance is to provide

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The premium on your term insurance will [increase | stay the same] with each renewal.

Generally,the period-certain settlement option is desirable because life insurance companies pay higher than average interest rates.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The majority of term policies have a [level | decreasing] face value.

The purchase of insurance is a common form of which risk management technique:

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

Planning for Retirement

Preserving Your Estate

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Exam 8: Insuring Your Life

Underwriters can predict whether or not you will suffer a loss this year.

Term insurance is generally the most economical form of life insurance for young families.

Credit life insurance is often a legal requirement when you buy something on credit.

Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on.He has purchased a face value of $100,000 and can accumulate cash value.What type of life insurance has Kurt purchased?

Which type of settlement option pays for over a predetermined time frame?

When you stop making premium payments on a whole life policy,the protection is immediately forfeited.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Social Security survivors' benefits typically provide benefits for children through [high school | college].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A life insurance policy should contain which of the following? [policy description | co-insurance clause].

Life insurance designed to pay the balance on a mortgage is an example of a good use decreasing term policy.

In determining available resources to offset economic needs,you would generally not consider

Multiple indemnity policies should be ignored as a source of funds when determining insurance needs because it offers no protection if the insured's death is due to natural causes.

The settlement option chosen by most beneficiaries is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Group insurance is most likely to be [term | whole life].

The primary purpose of life insurance is to provide

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The premium on your term insurance will [increase | stay the same] with each renewal.

Generally,the period-certain settlement option is desirable because life insurance companies pay higher than average interest rates.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The majority of term policies have a [level | decreasing] face value.

The purchase of insurance is a common form of which risk management technique:

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

Planning for Retirement

Preserving Your Estate

Filters