Question 1

Medicare part ________ pays for doctor's fees/medical services/supplies,while part ________ pays for hospital insurance benefits.

Accepted Answer

A) B;A 
B) A;B 
C) A;C 
D) B;C 
E) none of the above 
A) B;A 
B) A;B 
C) A;C 
D) B;C 
E) none of the above

Question 2

Tell how a PPO is different from a fee-for-service or HMO plan.

Accepted Answer

A preferred provider organization is a b

Question 3

Under a managed health care or prepaid plan you have a good deal of freedom to choose your doctors and hospitals.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an insurance rating service?

Accepted Answer

A) Weiss 
B) Moody's 
C) Standards & Fitch 
D) A.M.Best 
A) Weiss 
B) Moody's 
C) Standards & Fitch 
D) A.M.Best

Question 5

Alex has a $1,000,000 life insurance policy that will pay his wife Stephanie a level dollar amount over 15 years after his death.If the insurance company credited a 7.5% rate to the policy,what is the amount she will receive each year?

Accepted Answer

A) $66,666.67 
B) $116,829.55 
C) $113,287.24 
D) $105,654,45 
A) $66,666.67 
B) $116,829.55 
C) $113,287.24 
D) $105,654,45

Question 6

The nonforfeiture right gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.

Accepted Answer

A) True 
 B)False

Question 7

One of the best features of term insurance is that you are able to borrow against the face value.

Accepted Answer

A) True 
 B)False

Question 8

When firms allow employees to "opt out" regarding health care,employees

Accepted Answer

A) are offered a cash incentive for electing not to cover their families under the company health plan. 
B) are not eligible to participate if their spouse has health insurance. 
C) are only eligible to participate if they are single. 
D) none of the above. 
A) are offered a cash incentive for electing not to cover their families under the company health plan. 
B) are not eligible to participate if their spouse has health insurance. 
C) are only eligible to participate if they are single. 
D) none of the above.

Question 9

A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.

Accepted Answer

A) True 
 B)False

Question 10

The main disadvantage of a flexible spending plan is that you may lose any money remaining in the account at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 11

The needs approach to determining life insurance amounts considers which of the following?

Accepted Answer

A) Immediate financial needs 
B) Debt elimination funds 
C) Dependency expenses 
D) All of the above 
A) Immediate financial needs 
B) Debt elimination funds 
C) Dependency expenses 
D) All of the above

Question 12

List five questions you should ask in an attempt to determine life insurance needs.

Accepted Answer

-How long after your death do you want t

Question 13

You want to get a good buy on your life insurance contract.You find a book that compares insurance costs by incorporating the time value of money into its calculations.This method allows you to select wisely using the

Accepted Answer

A) interest-adjusted net cost method. 
B) traditional net cost method. 
C) variable method. 
D) comparison cost index. 
A) interest-adjusted net cost method. 
B) traditional net cost method. 
C) variable method. 
D) comparison cost index.

Question 14

Describe the pros and cons of major medical insurance.

Accepted Answer

Major medical covers medical costs beyon

Question 15

Compare and contrast group and individual health insurance policies.

Accepted Answer

Group insurance,which is insurance avail

Question 16

Suppose that your husband was killed in a bank robbery.Which of the following is not one of the typical settlement options that would be available?

Accepted Answer

A) Installment-payments 
B) Interest-only 
C) Conversion of spousal insurance 
D) Lump-sum 
E) Life annuity 
A) Installment-payments 
B) Interest-only 
C) Conversion of spousal insurance 
D) Lump-sum 
E) Life annuity

Question 17

What are the risks associated with term insurance policies?

Accepted Answer

A) You may need to have insurance coverage past the term expiration date. 
B) The cash value does not earn a decent return. 
C) The renewal premium may be cost prohibitive. 
D) Both A and C are correct. 
A) You may need to have insurance coverage past the term expiration date. 
B) The cash value does not earn a decent return. 
C) The renewal premium may be cost prohibitive. 
D) Both A and C are correct.

Question 18

Explain the purpose of the government-sponsored health care plans.

Accepted Answer

Worker's Compensation plans are governed

Question 19

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies.John is both the ________ and the ________ who will receive the ________ upon the death of Betty,the ________.

Accepted Answer

A) insured;beneficiary;money;policyholder 
B) policy owner;beneficiary;face amount;insured 
C) policy owner;insured;face amount;beneficiary 
D) beneficiary;premium payer;face amount;policy holder 
E) none of the above 
A) insured;beneficiary;money;policyholder 
B) policy owner;beneficiary;face amount;insured 
C) policy owner;insured;face amount;beneficiary 
D) beneficiary;premium payer;face amount;policy holder 
E) none of the above

Question 20

Nancy and Leonard are married.They have two children who will be financially dependent for the next 20 years.They are taking out life insurance on Leonard,the bread winner and earns an annual salary of $80,000.Nancy is sure she is able to get a 9.5% rate of return on the policy settlement.Using the earnings multiple approach calculate how much life insurance they should take out on Leonard.

Accepted Answer

A) $1,038,225 
B) $1,704,952 
C) $549,893 
D) $301,471 
E) None of the above 
A) $1,038,225 
B) $1,704,952 
C) $549,893 
D) $301,471 
E) None of the above

Medicare part pays for doctor's fees/medical services/supplies,while part pays for hospital insurance benefits.

Tell how a PPO is different from a fee-for-service or HMO plan.

Under a managed health care or prepaid plan you have a good deal of freedom to choose your doctors and hospitals.

Which of the following is not an insurance rating service?

Alex has a $1,000,000 life insurance policy that will pay his wife Stephanie a level dollar amount over 15 years after his death.If the insurance company credited a 7.5% rate to the policy,what is the amount she will receive each year?

The nonforfeiture right gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.

One of the best features of term insurance is that you are able to borrow against the face value.

When firms allow employees to "opt out" regarding health care,employees

A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.

The main disadvantage of a flexible spending plan is that you may lose any money remaining in the account at the end of the fiscal year.

The needs approach to determining life insurance amounts considers which of the following?

List five questions you should ask in an attempt to determine life insurance needs.

You want to get a good buy on your life insurance contract.You find a book that compares insurance costs by incorporating the time value of money into its calculations.This method allows you to select wisely using the

Describe the pros and cons of major medical insurance.

Compare and contrast group and individual health insurance policies.

Suppose that your husband was killed in a bank robbery.Which of the following is not one of the typical settlement options that would be available?

What are the risks associated with term insurance policies?

Explain the purpose of the government-sponsored health care plans.

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies.John is both the and the who will receive the upon the death of Betty,the .

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

Exam 9: Life and Health Insurance

Medicare part ________ pays for doctor's fees/medical services/supplies,while part ________ pays for hospital insurance benefits.

Tell how a PPO is different from a fee-for-service or HMO plan.

Under a managed health care or prepaid plan you have a good deal of freedom to choose your doctors and hospitals.

Which of the following is not an insurance rating service?

Alex has a $1,000,000 life insurance policy that will pay his wife Stephanie a level dollar amount over 15 years after his death.If the insurance company credited a 7.5% rate to the policy,what is the amount she will receive each year?

The nonforfeiture right gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.

One of the best features of term insurance is that you are able to borrow against the face value.

When firms allow employees to "opt out" regarding health care,employees

A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.

The main disadvantage of a flexible spending plan is that you may lose any money remaining in the account at the end of the fiscal year.

The needs approach to determining life insurance amounts considers which of the following?

List five questions you should ask in an attempt to determine life insurance needs.

You want to get a good buy on your life insurance contract.You find a book that compares insurance costs by incorporating the time value of money into its calculations.This method allows you to select wisely using the

Describe the pros and cons of major medical insurance.

Compare and contrast group and individual health insurance policies.

Suppose that your husband was killed in a bank robbery.Which of the following is not one of the typical settlement options that would be available?

What are the risks associated with term insurance policies?

Explain the purpose of the government-sponsored health care plans.

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies.John is both the ________ and the ________ who will receive the ________ upon the death of Betty,the ________.

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

Medicare part pays for doctor's fees/medical services/supplies,while part pays for hospital insurance benefits.

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies.John is both the and the who will receive the upon the death of Betty,the .