Question 1

Cash value will not be forfeited to the insurance company for non-payment of a premium,but will instead always accrue to the benefit of the policy owner.

Accepted Answer

A) True 
 B)False

Question 2

A life insurance contract contains clauses for

Accepted Answer

A)  settlement options. 
B)  policy reinstatement. 
C)  change of policy. 
D)  all of the above. 
E)  none of the above. 
A)  settlement options. 
B)  policy reinstatement. 
C)  change of policy. 
D)  all of the above. 
E)  none of the above.

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If you have $300 per year available for life insurance,you could get higher life insurance protection with a [continuous | limited payment] policy.

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 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Deciding which people will be insured by an insurance company is a function of the [agent | underwriter].

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 5

The three major categories of life insurance are term,straight life,and limited payment.

Accepted Answer

A) True 
 B)False

Question 6

Universal life insurance is

Accepted Answer

A)  a deferred premium payment policy. 
B)  primarily sold to college students. 
C)  a combined investment plan and insurance policy. 
D)  a provision for a secondary beneficiary. 
E)  all of the above. 
A)  a deferred premium payment policy. 
B)  primarily sold to college students. 
C)  a combined investment plan and insurance policy. 
D)  a provision for a secondary beneficiary. 
E)  all of the above.

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If neither the primary nor secondary beneficiary survives the insured,the life insurance proceeds will be [kept by the insurance company | paid to the state in which the insured lived | paid to the estate of the insured and are distributed by the probate court].

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

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

Accepted Answer

A) True 
 B)False

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The life insurance policy that clearly separates the protection and savings elements is [whole life | universal 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 11

Annual term insurance premiums increase as you get older while whole life insurance premiums remain constant.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not characteristic of universal life insurance?

Accepted Answer

A)  flexible premiums 
B)  choice of how the accumulation account is invested 
C)  option A provides a level death benefit 
D)  option B provides a stated amount of insurance plus the accumulated cash value 
E)  the death protection and the savings portion are identified separately 
A)  flexible premiums 
B)  choice of how the accumulation account is invested 
C)  option A provides a level death benefit 
D)  option B provides a stated amount of insurance plus the accumulated cash value 
E)  the death protection and the savings portion are identified separately

Question 13

Using the ____ approach is the most accurate method to determine life insurance needs.

Accepted Answer

A)  human life value 
B)  multiple earnings 
C)  risk assessment 
D)  economic identification 
E)  needs 
A)  human life value 
B)  multiple earnings 
C)  risk assessment 
D)  economic identification 
E)  needs

Question 14

Level premium term policies have become much more popular than annual renewable term policies in recent years.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

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 16

If a life insurance policy pays dividends,it is called:

Accepted Answer

A)  universal life 
B)  participating 
C)  investment grade 
D)  paid-up 
E)  extended 
A)  universal life 
B)  participating 
C)  investment grade 
D)  paid-up 
E)  extended

Question 17

You may reinstate your lapsed life insurance policy without answering health related questions again.

Accepted Answer

A) True 
 B)False

Question 18

One should typically name both primary and contingent beneficiaries for life insurance policies.

Accepted Answer

A) True 
 B)False

Question 19

____ is not a type of term insurance.

Accepted Answer

A)  Limited pay 
B)  Decreasing 
C)  Convertible 
D)  Renewable 
E)  Annual 
A)  Limited pay 
B)  Decreasing 
C)  Convertible 
D)  Renewable 
E)  Annual

Question 20

From the standpoint of the person buying insurance,the central purpose of insurance should be:

Accepted Answer

A)  to collect for all accidental losses 
B)  to transfer risks of serious losses 
C)  to support the prevention of losses 
D)  to accumulate savings 
E)  to reduce payments for the most frequently occurring losses 
A)  to collect for all accidental losses 
B)  to transfer risks of serious losses 
C)  to support the prevention of losses 
D)  to accumulate savings 
E)  to reduce payments for the most frequently occurring losses

Cash value will not be forfeited to the insurance company for non-payment of a premium,but will instead always accrue to the benefit of the policy owner.

A life insurance contract contains clauses for

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you have $300 per year available for life insurance,you could get higher life insurance protection with a [continuous | limited payment] policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Deciding which people will be insured by an insurance company is a function of the [agent | underwriter].

The three major categories of life insurance are term,straight life,and limited payment.

Universal life insurance is

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The life insurance policy that clearly separates the protection and savings elements is [whole life | universal life].

Annual term insurance premiums increase as you get older while whole life insurance premiums remain constant.

Which of the following is not characteristic of universal life insurance?

Using the ____ approach is the most accurate method to determine life insurance needs.

Level premium term policies have become much more popular than annual renewable term policies in recent years.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

If a life insurance policy pays dividends,it is called:

You may reinstate your lapsed life insurance policy without answering health related questions again.

One should typically name both primary and contingent beneficiaries for life insurance policies.

____ is not a type of term insurance.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

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

Cash value will not be forfeited to the insurance company for non-payment of a premium,but will instead always accrue to the benefit of the policy owner.

A life insurance contract contains clauses for

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you have $300 per year available for life insurance,you could get higher life insurance protection with a [continuous | limited payment] policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Deciding which people will be insured by an insurance company is a function of the [agent | underwriter].

The three major categories of life insurance are term,straight life,and limited payment.

Universal life insurance is

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The life insurance policy that clearly separates the protection and savings elements is [whole life | universal life].

Annual term insurance premiums increase as you get older while whole life insurance premiums remain constant.

Which of the following is not characteristic of universal life insurance?

Using the ____ approach is the most accurate method to determine life insurance needs.

Level premium term policies have become much more popular than annual renewable term policies in recent years.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

If a life insurance policy pays dividends,it is called:

You may reinstate your lapsed life insurance policy without answering health related questions again.

One should typically name both primary and contingent beneficiaries for life insurance policies.

____ is not a type of term insurance.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

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