Question 1

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 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

Cash value is an important component of whole life,universal life,and variable life but is never a component of term life insurance.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Annual premiums would be lower with [continuous | limited payment] whole life insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The life insurance policy that clearly separates the protection and savings elements is [whole life | universal life].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

If an insured commits suicide within two years of the policy's inception,the company will return the premiums paid.

Accepted Answer

A) True 
 B)False

Question 9

Decreasing term insurance usually has a decreasing face value and

Accepted Answer

A) a decreasing premium. 
B) a level premium. 
C) an increasing premium. 
D) a fluctuating premium. 
E) none of the above. 
A) a decreasing premium. 
B) a level premium. 
C) an increasing premium. 
D) a fluctuating premium. 
E) none of the above.

Question 10

The basic assumptions that the company uses to compute its insurance illustrations include all except

Accepted Answer

A) age. 
B) sex. 
C) health status. 
D) income. 
A) age. 
B) sex. 
C) health status. 
D) income.

Question 11

The probability of a loss occurring can be reduced by

Accepted Answer

A) risk observance. 
B) loss prevention. 
C) risk assumption. 
D) risk retention. 
E) insurance. 
A) risk observance. 
B) loss prevention. 
C) risk assumption. 
D) risk retention. 
E) insurance.

Question 12

Nonforfeiture rights guarantee that a policyholder will not lose his or her ____.

Accepted Answer

A) face value. 
B) death benefits for survivors. 
C) cash value. 
D) premium refunds. 
E) premium reductions. 
A) face value. 
B) death benefits for survivors. 
C) cash value. 
D) premium refunds. 
E) premium reductions.

Question 13

The least expensive form of whole life insurance protection is

Accepted Answer

A) term. 
B) straight life. 
C) limited payment. 
D) universal. 
A) term. 
B) straight life. 
C) limited payment. 
D) universal.

Question 14

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 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If a loss is certain to occur,there is [a | no] risk.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

Accepted Answer

A) True 
 B)False

Question 17

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Accepted Answer

A) True 
 B)False

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Living benefits would [increase | decrease] the proceeds available for beneficiaries.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

Cash value is an important component of whole life,universal life,and variable life but is never a component of term life insurance.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Annual premiums would be lower with [continuous | limited payment] whole life insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.

If an insured commits suicide within two years of the policy's inception,the company will return the premiums paid.

Decreasing term insurance usually has a decreasing face value and

The basic assumptions that the company uses to compute its insurance illustrations include all except

The probability of a loss occurring can be reduced by

Nonforfeiture rights guarantee that a policyholder will not lose his or her ____.

The least expensive form of whole life insurance protection is

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If a loss is certain to occur,there is [a | no] risk.

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

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

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

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

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Life insurance [will | will not] pay proceeds if an insured is killed in a commercial airline crash.

Cash value is an important component of whole life,universal life,and variable life but is never a component of term life insurance.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Annual premiums would be lower with [continuous | limited payment] whole life insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.

If an insured commits suicide within two years of the policy's inception,the company will return the premiums paid.

Decreasing term insurance usually has a decreasing face value and

The basic assumptions that the company uses to compute its insurance illustrations include all except

The probability of a loss occurring can be reduced by

Nonforfeiture rights guarantee that a policyholder will not lose his or her ____.

The least expensive form of whole life insurance protection is

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If a loss is certain to occur,there is [a | no] risk.

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

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

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

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