Question 1

Policies define people as disabled if they can't perform

Accepted Answer

A) the duties of their own occupation. 
B) the duties of any occupation for which they are reasonably suited. 
C) their own occupation for the first two years of their disability,and thereafter if they can't perform any occupation for which they are reasonably suited. 
D) All of the above could be correct,it varies with the policy. 
A) the duties of their own occupation. 
B) the duties of any occupation for which they are reasonably suited. 
C) their own occupation for the first two years of their disability,and thereafter if they can't perform any occupation for which they are reasonably suited. 
D) All of the above could be correct,it varies with the policy.

Question 2

List the required health benefits that health care plans must provide under the Affordable Care Act.

Accepted Answer

-Ambulatory patient services
-Emergency

Question 3

Sam has a $500,000 life insurance policy that will pay his wife out over 20 years upon his death.If the life insurance company credited a 9% rate to the policy,what will be the amount of each annual payment?

Accepted Answer

A) $54,773.24 
B) $25,000 
C) $27,015.32 
D) $45,887.23 
A) $54,773.24 
B) $25,000 
C) $27,015.32 
D) $45,887.23

Question 4

Your agent has told you to think about immediate needs at the time of death,debt elimination funds,immediate transitional funds,dependency expenses,spousal life income,educational expenses for the children,and retirement income.What has he described?

Accepted Answer

A) The multiple earnings need approach 
B) The needs approach 
C) The standard approach 
D) The combination approach 
E) The long-term approach 
A) The multiple earnings need approach 
B) The needs approach 
C) The standard approach 
D) The combination approach 
E) The long-term approach

Question 5

If your employer doesn't provide them,then it might not be a financially wise decision to purchase dental and eye insurance.

Accepted Answer

A) True 
 B)False

Question 6

With short-term disability coverage,payments will continue to age 65.

Accepted Answer

A) True 
 B)False

Question 7

With decreasing term insurance

Accepted Answer

A) the premiums remain constant,but the face amount of the policy declines. 
B) the premiums decline,and the face amount of the policy declines. 
C) the premiums remain constant,and the face amount of the policy remains constant. 
D) the premiums decline,and the face amount of the policy increases. 
A) the premiums remain constant,but the face amount of the policy declines. 
B) the premiums decline,and the face amount of the policy declines. 
C) the premiums remain constant,and the face amount of the policy remains constant. 
D) the premiums decline,and the face amount of the policy increases.

Question 8

Why is the beneficiary decision so important when buying life insurance?

Accepted Answer

The beneficiary is the person or persons

Question 9

Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage.You would purchase what type of insurance?

Accepted Answer

A) Medicare Additional insurance 
B) Medigap insurance 
C) Medicare Plus insurance 
D) Medicare Bridge insurance 
E) None of the above 
A) Medicare Additional insurance 
B) Medigap insurance 
C) Medicare Plus insurance 
D) Medicare Bridge insurance 
E) None of the above

Question 10

Your agent argues in favor of cash-value life insurance.You counteract with term to

Accepted Answer

A) have a larger policy and keep things simple. 
B) enjoy a relatively low cost per each $1,000 of coverage. 
C) have a lot of insurance at affordable prices when you need it the most. 
D) save the difference you would pay,invest it,and come out ahead. 
E) all of the above. 
A) have a larger policy and keep things simple. 
B) enjoy a relatively low cost per each $1,000 of coverage. 
C) have a lot of insurance at affordable prices when you need it the most. 
D) save the difference you would pay,invest it,and come out ahead. 
E) all of the above.

Question 11

Life insurance can be owned by individuals but cannot be owned by businesses?

Accepted Answer

A) True 
 B)False

Question 12

What are the disadvantages of group term insurance?

Accepted Answer

A) The premiums are usually subsidized by the employer. 
B) The cost to covert from group coverage to individual coverage if you leave the company may be cost prohibitive. 
C) Relying on group insurance may hinder your decision to leave the company. 
D) Both B and C are correct. 
A) The premiums are usually subsidized by the employer. 
B) The cost to covert from group coverage to individual coverage if you leave the company may be cost prohibitive. 
C) Relying on group insurance may hinder your decision to leave the company. 
D) Both B and C are correct.

Question 13

Group health insurance

Accepted Answer

A) refers to the way the health insurance is sold rather than to the characteristics of the policy. 
B) tends to be more expensive. 
C) reflects the age and health of the policyholder. 
D) all of the above. 
A) refers to the way the health insurance is sold rather than to the characteristics of the policy. 
B) tends to be more expensive. 
C) reflects the age and health of the policyholder. 
D) all of the above.

Question 14

What is the name of the insurance policy that pays your beneficiary a specific amount of money if you die while covered by the policy,and this coverage is for a set number of years and must be renewed when it expires?

Accepted Answer

A) Term insurance 
B) Fixed premium insurance 
C) Cash-value insurance 
D) Universal life insurance 
E) None of the above 
A) Term insurance 
B) Fixed premium insurance 
C) Cash-value insurance 
D) Universal life insurance 
E) None of the above

Question 15

Explain the advantage of reentry term life insurance.

Accepted Answer

Reentry term is guaranteed renewable at

Question 16

Your entire family was injured in an automobile accident,some more seriously than others.If any member of your family became disabled to a greater extent,where might you look for disability benefits?

Accepted Answer

A) Worker's Compensation 
B) Social Security 
C) Medicare 
D) Medicaid 
E) Both B and D above 
A) Worker's Compensation 
B) Social Security 
C) Medicare 
D) Medicaid 
E) Both B and D above

Question 17

Let's assume you are the beneficiary of your great Aunt's life insurance policy.Sadly she passed away yesterday.You elect to receive annual payments from this policy for the next 20 years.The settlement amount is $500,000 and the interest accruing on the policy is an annual 8%.What will be your annual life insurance annuity payments?

Accepted Answer

A) $10,923 
B) $50,926 
C) $72,551 
D) $98,934 
A) $10,923 
B) $50,926 
C) $72,551 
D) $98,934

Question 18

Most likely,when you apply for life insurance,you will have to fill out a detailed medical history and take a physical exam.Why is this true?

Accepted Answer

A) The insurance company wants to see if you have any pre-existing conditions. 
B) It prevents sick people from purchasing insurance. 
C) It determines how you will be rated and what premiums you will pay. 
D) All of the above 
E) All but B are correct. 
A) The insurance company wants to see if you have any pre-existing conditions. 
B) It prevents sick people from purchasing insurance. 
C) It determines how you will be rated and what premiums you will pay. 
D) All of the above 
E) All but B are correct.

Question 19

You should only consider a long-term care policy that includes coverage for Alzheimer's and Parkinson's disease.It should also include which of the following provisions?

Accepted Answer

A) Type of care 
B) Benefit and waiting period 
C) Inflation adjustment 
D) Waiver of premium 
E) All of the above 
A) Type of care 
B) Benefit and waiting period 
C) Inflation adjustment 
D) Waiver of premium 
E) All of the above

Question 20

Sharing the financial consequences associated with risk in the insurance industry is sometimes called

Accepted Answer

A) risk pooling. 
B) risk deferring. 
C) risk migration. 
D) risk splitting. 
E) none of the above. 
A) risk pooling. 
B) risk deferring. 
C) risk migration. 
D) risk splitting. 
E) none of the above.

Policies define people as disabled if they can't perform

List the required health benefits that health care plans must provide under the Affordable Care Act.

Sam has a $500,000 life insurance policy that will pay his wife out over 20 years upon his death.If the life insurance company credited a 9% rate to the policy,what will be the amount of each annual payment?

Your agent has told you to think about immediate needs at the time of death,debt elimination funds,immediate transitional funds,dependency expenses,spousal life income,educational expenses for the children,and retirement income.What has he described?

If your employer doesn't provide them,then it might not be a financially wise decision to purchase dental and eye insurance.

With short-term disability coverage,payments will continue to age 65.

With decreasing term insurance

Why is the beneficiary decision so important when buying life insurance?

Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage.You would purchase what type of insurance?

Your agent argues in favor of cash-value life insurance.You counteract with term to

Life insurance can be owned by individuals but cannot be owned by businesses?

What are the disadvantages of group term insurance?

Group health insurance

What is the name of the insurance policy that pays your beneficiary a specific amount of money if you die while covered by the policy,and this coverage is for a set number of years and must be renewed when it expires?

Explain the advantage of reentry term life insurance.

Your entire family was injured in an automobile accident,some more seriously than others.If any member of your family became disabled to a greater extent,where might you look for disability benefits?

Most likely,when you apply for life insurance,you will have to fill out a detailed medical history and take a physical exam.Why is this true?

You should only consider a long-term care policy that includes coverage for Alzheimer's and Parkinson's disease.It should also include which of the following provisions?

Sharing the financial consequences associated with risk in the insurance industry is sometimes called

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

Policies define people as disabled if they can't perform

List the required health benefits that health care plans must provide under the Affordable Care Act.

Sam has a $500,000 life insurance policy that will pay his wife out over 20 years upon his death.If the life insurance company credited a 9% rate to the policy,what will be the amount of each annual payment?

Your agent has told you to think about immediate needs at the time of death,debt elimination funds,immediate transitional funds,dependency expenses,spousal life income,educational expenses for the children,and retirement income.What has he described?

If your employer doesn't provide them,then it might not be a financially wise decision to purchase dental and eye insurance.

With short-term disability coverage,payments will continue to age 65.

With decreasing term insurance

Why is the beneficiary decision so important when buying life insurance?

Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage.You would purchase what type of insurance?

Your agent argues in favor of cash-value life insurance.You counteract with term to

Life insurance can be owned by individuals but cannot be owned by businesses?

What are the disadvantages of group term insurance?

Group health insurance

What is the name of the insurance policy that pays your beneficiary a specific amount of money if you die while covered by the policy,and this coverage is for a set number of years and must be renewed when it expires?

Explain the advantage of reentry term life insurance.

Your entire family was injured in an automobile accident,some more seriously than others.If any member of your family became disabled to a greater extent,where might you look for disability benefits?

Most likely,when you apply for life insurance,you will have to fill out a detailed medical history and take a physical exam.Why is this true?

You should only consider a long-term care policy that includes coverage for Alzheimer's and Parkinson's disease.It should also include which of the following provisions?

Sharing the financial consequences associated with risk in the insurance industry is sometimes called

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