Question 1

The primary advantage of term insurance is a flexible premium.

Accepted Answer

A) True 
 B)False

Question 2

Jenny and Joey have seven children and are expecting another.Joey is the primary income provider for his family,and the couple recognizes that the growing family is in need of life insurance.To begin the agent search process,Jenny and Joey make a list of prospects from reputable companies.Both Jenny and Joey prefer to speak to an agent with a life insurance certification.What life insurance agent designation do you recommend?

Accepted Answer

A) CLU 
B) LICA 
C) AIA 
D) CIR 
A) CLU 
B) LICA 
C) AIA 
D) CIR

Question 3

A guaranteed insurability rider allows you to increase your face value even if your health fails.

Accepted Answer

A) True 
 B)False

Question 4

Describe the disability insurance features that make sense.

Accepted Answer

1.Choose a plan with a definition of dis

Question 5

Define policy rider and describe the purpose of the five basic ones.

Accepted Answer

A rider is a special provision that may

Question 6

Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?

Accepted Answer

A) Has a professional designation 
B) Is a full-time agent 
C) Has the necessary experience and training 
D) Has references 
E) All of the above 
A) Has a professional designation 
B) Is a full-time agent 
C) Has the necessary experience and training 
D) Has references 
E) All of the above

Question 7

Which of these life insurance plans holds the annual premium constant but decreases the face value of the policy each year?

Accepted Answer

A) Decreasing term 
B) Credit life 
C) Mortgage life 
D) Universal life 
E) All of the above 
A) Decreasing term 
B) Credit life 
C) Mortgage life 
D) Universal life 
E) All of the above

Question 8

Your grandmother has just turned 65 years old and is now eligible for Medicare.She asks you whether or not she should also purchase Medigap insurance.What would you tell her to do?

Accepted Answer

A) No,Medicare is a very comprehensive coverage so you won't need any additional coverage. 
B) Yes,Medicare is very complicated and there are areas not covered so it would be a good idea to purchase additional coverage. 
A) No,Medicare is a very comprehensive coverage so you won't need any additional coverage. 
B) Yes,Medicare is very complicated and there are areas not covered so it would be a good idea to purchase additional coverage.

Question 9

With decreasing term life insurance,the face amount of the policy remains constant,but the premiums decrease.

Accepted Answer

A) True 
 B)False

Question 10

Joleene is a single parent with two children and earns $45,000 per year.She is purchasing term life insurance for 15 years until her youngest child is self supporting.Assuming her survivors can receive a 3% after-tax,inflation return on insurance proceeds,use the earnings multiple approach to calculate the face value of Joleene's policy.

Accepted Answer

A) $33,445 
B) $547,851 
C) $397,548 
D) $556,668 
E) None of the above 
A) $33,445 
B) $547,851 
C) $397,548 
D) $556,668 
E) None of the above

Question 11

The waiting or elimination period on one's disability insurance refers to the period after the disability during which no benefits can occur.The waiting period is equivalent to

Accepted Answer

A) the cost of one's total premium. 
B) one's annual salary. 
C) one's median income. 
D) 6 months of one's salary. 
E) the deductible for one's health care policy. 
A) the cost of one's total premium. 
B) one's annual salary. 
C) one's median income. 
D) 6 months of one's salary. 
E) the deductible for one's health care policy.

Question 12

Sally's employer's insurance company does not offer eye insurance.She has always had 20/20 vision and as a healthy 24 year old assumes her eyes will not change drastically.Should she purchase a vision policy since her employer does not offer such a plan?

Accepted Answer

A) Yes 
B) No 
A) Yes 
B) No

Question 13

Suppose that you have decided to buy some life insurance.Which method of determining your life insurance needs calculates the annual loss of income stream?

Accepted Answer

A) Needs approach 
B) Earnings multiple approach 
C) Limited term approach 
D) Whole life approach 
A) Needs approach 
B) Earnings multiple approach 
C) Limited term approach 
D) Whole life approach

Question 14

What are the two basic forms of variable life insurance?

Accepted Answer

The two basic forms

Question 15

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

Accepted Answer

A) automatically file the claims for you. 
B) require you to see only a specified group of doctors,hospitals,and clinics. 
C) are more expensive to operate and cost you more money. 
D) are less efficient. 
E) both A and B above. 
A) automatically file the claims for you. 
B) require you to see only a specified group of doctors,hospitals,and clinics. 
C) are more expensive to operate and cost you more money. 
D) are less efficient. 
E) both A and B above.

Question 16

According to the Keown book,two recommended online insurance quote services are accuquote.com and insure.com.

Accepted Answer

A) True 
 B)False

Question 17

Surgical insurance covers the cost of surgery.A surgical policy generally lists which of the following?

Accepted Answer

A) The specific operations it will cover 
B) The maximum dollar amount that will be paid for each operation 
C) The dollar amount that will be paid to the surgeon for the operation 
D) All of the above 
A) The specific operations it will cover 
B) The maximum dollar amount that will be paid for each operation 
C) The dollar amount that will be paid to the surgeon for the operation 
D) All of the above

Question 18

A disadvantage of term insurance is that the cost rises each time the policy is renewed.

Accepted Answer

A) True 
 B)False

Question 19

Most life insurance settlements are based on the named insured dying from an accidental death.

Accepted Answer

A) True 
 B)False

Question 20

What is the main purpose of life insurance?

Accepted Answer

The main purpose of life insurance is to

The primary advantage of term insurance is a flexible premium.

A guaranteed insurability rider allows you to increase your face value even if your health fails.

Describe the disability insurance features that make sense.

Define policy rider and describe the purpose of the five basic ones.

Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?

Which of these life insurance plans holds the annual premium constant but decreases the face value of the policy each year?

Your grandmother has just turned 65 years old and is now eligible for Medicare.She asks you whether or not she should also purchase Medigap insurance.What would you tell her to do?

With decreasing term life insurance,the face amount of the policy remains constant,but the premiums decrease.

The waiting or elimination period on one's disability insurance refers to the period after the disability during which no benefits can occur.The waiting period is equivalent to

Sally's employer's insurance company does not offer eye insurance.She has always had 20/20 vision and as a healthy 24 year old assumes her eyes will not change drastically.Should she purchase a vision policy since her employer does not offer such a plan?

Suppose that you have decided to buy some life insurance.Which method of determining your life insurance needs calculates the annual loss of income stream?

What are the two basic forms of variable life insurance?

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

According to the Keown book,two recommended online insurance quote services are accuquote.com and insure.com.

Surgical insurance covers the cost of surgery.A surgical policy generally lists which of the following?

A disadvantage of term insurance is that the cost rises each time the policy is renewed.

Most life insurance settlements are based on the named insured dying from an accidental death.

What is the main purpose of life insurance?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

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Exam 9: Life and Health Insurance

The primary advantage of term insurance is a flexible premium.

A guaranteed insurability rider allows you to increase your face value even if your health fails.

Describe the disability insurance features that make sense.

Define policy rider and describe the purpose of the five basic ones.

Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?

Which of these life insurance plans holds the annual premium constant but decreases the face value of the policy each year?

Your grandmother has just turned 65 years old and is now eligible for Medicare.She asks you whether or not she should also purchase Medigap insurance.What would you tell her to do?

With decreasing term life insurance,the face amount of the policy remains constant,but the premiums decrease.

The waiting or elimination period on one's disability insurance refers to the period after the disability during which no benefits can occur.The waiting period is equivalent to

Sally's employer's insurance company does not offer eye insurance.She has always had 20/20 vision and as a healthy 24 year old assumes her eyes will not change drastically.Should she purchase a vision policy since her employer does not offer such a plan?

Suppose that you have decided to buy some life insurance.Which method of determining your life insurance needs calculates the annual loss of income stream?

What are the two basic forms of variable life insurance?

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

According to the Keown book,two recommended online insurance quote services are accuquote.com and insure.com.

Surgical insurance covers the cost of surgery.A surgical policy generally lists which of the following?

A disadvantage of term insurance is that the cost rises each time the policy is renewed.

Most life insurance settlements are based on the named insured dying from an accidental death.

What is the main purpose of life insurance?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters