Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Insurance is a tool that can lessen [economic | accident] risk.

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 2

Life insurance policies with small face amounts where the premium may be collected weekly by agents is

Accepted Answer

A)  credit life insurance. 
B)  mortgage life insurance. 
C)  industrial life insurance. 
D)  special purpose insurance. 
E)  group life insurance. 
A)  credit life insurance. 
B)  mortgage life insurance. 
C)  industrial life insurance. 
D)  special purpose insurance. 
E)  group life insurance.

Question 3

The death benefit of ____ life insurance may go down due to poor investment returns.

Accepted Answer

A)  limited pay 
B)  whole 
C)  universal 
D)  variable 
E)  c and d 
A)  limited pay 
B)  whole 
C)  universal 
D)  variable 
E)  c and d

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Credit life | Group] insurance is one of the most expensive forms of life insurance.

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

Life insurance cash value may be collected by terminating the policy.

Accepted Answer

A) True 
 B)False

Question 6

All types of life insurance offer a cash surrender value.

Accepted Answer

A) True 
 B)False

Question 7

A waiver of premium benefit excuses premium payment when the insured is unemployed.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [25% | 100%] of the first year's premium.

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

The underwriting function is designed to be sure that premiums are based on

Accepted Answer

A)  income levels. 
B)  the value of the loss. 
C)  the value of the gain. 
D)  the chance of loss. 
E)  expense levels. 
A)  income levels. 
B)  the value of the loss. 
C)  the value of the gain. 
D)  the chance of loss. 
E)  expense levels.

Question 10

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

Accepted Answer

A)  $200,000 to Jack 
B)  $100,000 each to Mimi and Ann 
C)  $100,000 to Jack and $50,000 each to Mimi and Ann 
D)  $66,666 each to Jack,Mimi,and Ann 
E)  $150,000 to Jack and $25,000 each to Mimi and Ann 
A)  $200,000 to Jack 
B)  $100,000 each to Mimi and Ann 
C)  $100,000 to Jack and $50,000 each to Mimi and Ann 
D)  $66,666 each to Jack,Mimi,and Ann 
E)  $150,000 to Jack and $25,000 each to Mimi and Ann

Question 11

When cash value is withdrawn from a life insurance policy it is always tax free.

Accepted Answer

A) True 
 B)False

Question 12

Policy dividends paid on participating policies are a return of unused premium based upon the claims experience of the mutual insurance company.

Accepted Answer

A) True 
 B)False

Question 13

A life insurance policy should contain a co-insurance clause.

Accepted Answer

A) True 
 B)False

Question 14

Paying life insurance premiums on a(n)____ basis will be the most economical.

Accepted Answer

A)  annual 
B)  semi annual 
C)  quarterly 
D)  monthly 
E)  It makes no difference. 
A)  annual 
B)  semi annual 
C)  quarterly 
D)  monthly 
E)  It makes no difference.

Question 15

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

Accepted Answer

A) True 
 B)False

Question 16

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Accepted Answer

A) True 
 B)False

Question 17

Universal life insurance is often suitable for single college students since the cost is quite low.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Smoking [will | will not] be a factor in determining life insurance premiums.

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. 
-[Level premium | annual renewable] term policies have become much more popular in recent years.

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

Alice is 40 years old and earns $35,000 annually.The multiple earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings.How much insurance should Alice have?

Accepted Answer

$35,000 *

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Insurance is a tool that can lessen [economic | accident] risk.

Life insurance policies with small face amounts where the premium may be collected weekly by agents is

The death benefit of ____ life insurance may go down due to poor investment returns.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Credit life | Group] insurance is one of the most expensive forms of life insurance.

Life insurance cash value may be collected by terminating the policy.

All types of life insurance offer a cash surrender value.

A waiver of premium benefit excuses premium payment when the insured is unemployed.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [25% | 100%] of the first year's premium.

The underwriting function is designed to be sure that premiums are based on

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

When cash value is withdrawn from a life insurance policy it is always tax free.

Policy dividends paid on participating policies are a return of unused premium based upon the claims experience of the mutual insurance company.

A life insurance policy should contain a co-insurance clause.

Paying life insurance premiums on a(n)____ basis will be the most economical.

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Universal life insurance is often suitable for single college students since the cost is quite low.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Smoking [will | will not] be a factor in determining life insurance premiums.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Level premium | annual renewable] term policies have become much more popular in recent years.

Alice is 40 years old and earns $35,000 annually.The multiple earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings.How much insurance should Alice have?

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

Exam 8: Insuring Your Life

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Insurance is a tool that can lessen [economic | accident] risk.

Life insurance policies with small face amounts where the premium may be collected weekly by agents is

The death benefit of ____ life insurance may go down due to poor investment returns.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Credit life | Group] insurance is one of the most expensive forms of life insurance.

Life insurance cash value may be collected by terminating the policy.

All types of life insurance offer a cash surrender value.

A waiver of premium benefit excuses premium payment when the insured is unemployed.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [25% | 100%] of the first year's premium.

The underwriting function is designed to be sure that premiums are based on

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

When cash value is withdrawn from a life insurance policy it is always tax free.

Policy dividends paid on participating policies are a return of unused premium based upon the claims experience of the mutual insurance company.

A life insurance policy should contain a co-insurance clause.

Paying life insurance premiums on a(n)____ basis will be the most economical.

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Universal life insurance is often suitable for single college students since the cost is quite low.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Smoking [will | will not] be a factor in determining life insurance premiums.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Level premium | annual renewable] term policies have become much more popular in recent years.

Alice is 40 years old and earns $35,000 annually.The multiple earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings.How much insurance should Alice have?

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