Question 1

The death benefit of a(n) _____ life insurance policy may decrease because of poor investment returns.

Accepted Answer

A)  limited payment 
B)  whole 
C)  variable 
D)  group 
E)  industrial 
A)  limited payment 
B)  whole 
C)  variable 
D)  group 
E)  industrial C

Question 2

_____ insurance is generally sold in conjunction with installment loans.

Accepted Answer

A)  Group life 
B)  Credit life 
C)  Industrial life 
D)  Home service life 
E)  Mortgage life 
A)  Group life 
B)  Credit life 
C)  Industrial life 
D)  Home service life 
E)  Mortgage life B

Question 3

Which of the following characterizes whole life insurance?

Accepted Answer

A)  Low fixed premiums 
B)  High death protection 
C)  Temporary coverage for a set period 
D)  Moderate return on investment 
E)  No tax advantages 
A)  Low fixed premiums 
B)  High death protection 
C)  Temporary coverage for a set period 
D)  Moderate return on investment 
E)  No tax advantages D

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
Credit life insurance is generally considered to be a [ good | poor ] life insurance buy.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 5

Which of the following leads to the payment of a higher insurance premium by the potential insured?

Accepted Answer

A)  Job promotion 
B)  High-paying career 
C)  Obesity 
D)  Childbirth in the family 
E)  Marriage 
A)  Job promotion 
B)  High-paying career 
C)  Obesity 
D)  Childbirth in the family 
E)  Marriage

Question 6

Your need for additional life insurance can be determined by looking at the difference between your family's available financial resources after your death and your family's total economic needs.

Accepted Answer

A) True 
 B)False

Question 7

It can be difficult to evaluate the true cost of a _____ policy at the time of purchase.

Accepted Answer

A)  term life insurance 
B)  whole life insurance 
C)  universal life insurance 
D)  variable life insurance 
E)  mortgage life insurance 
A)  term life insurance 
B)  whole life insurance 
C)  universal life insurance 
D)  variable life insurance 
E)  mortgage life insurance

Question 8

While using the needs analysis approach to determine how much life insurance to purchase, you should:

Accepted Answer

A)  add the financial resources that will be available after your death to your family's total economic needs. 
B)  multiply your gross annual earnings by the size of your family. 
C)  purchase the equivalent of your current annual income. 
D)  divide your gross annual earnings by the size of your family. 
E)  deduct the financial resources that will be available after your death from your family's total economic needs. 
A)  add the financial resources that will be available after your death to your family's total economic needs. 
B)  multiply your gross annual earnings by the size of your family. 
C)  purchase the equivalent of your current annual income. 
D)  divide your gross annual earnings by the size of your family. 
E)  deduct the financial resources that will be available after your death from your family's total economic needs.

Question 9

Which of the following statements regarding insurance underwriting is true?

Accepted Answer

A)  Insurance underwriters perform any activity that reduces the chance that a loss will occur. 
B)  Insurance underwriters perform a process used to avoid an act that would create a risk. 
C)  Insurance underwriters help insurers determine the insurance needs of the potential insured. 
D)  Insurance underwriters lessen the severity of loss after it occurs. 
E)  Insurance underwriters design rate-classification schedules so that people pay premiums that reflect their chance of loss. 
A)  Insurance underwriters perform any activity that reduces the chance that a loss will occur. 
B)  Insurance underwriters perform a process used to avoid an act that would create a risk. 
C)  Insurance underwriters help insurers determine the insurance needs of the potential insured. 
D)  Insurance underwriters lessen the severity of loss after it occurs. 
E)  Insurance underwriters design rate-classification schedules so that people pay premiums that reflect their chance of loss.

Question 10

Insurance companies use _____ to determine whom they will insure and what they will charge for insurance coverage.

Accepted Answer

A)  Social Security survivor's benefits 
B)  the needs analysis method 
C)  underwriting 
D)  risk assumption 
E)  loss control 
A)  Social Security survivor's benefits 
B)  the needs analysis method 
C)  underwriting 
D)  risk assumption 
E)  loss control

Question 11

A grace period permits a policyholder to retain full death protection for usually _____ after a premium payment date is missed.

Accepted Answer

A)  12 months 
B)  6 months 
C)  3 months 
D)  50 days 
E)  31 days 
A)  12 months 
B)  6 months 
C)  3 months 
D)  50 days 
E)  31 days

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 neither primary nor contingent beneficiaries survive the insured, the life insurance death benefits will be [ kept by the insurance company |  paid to the estate of the insured and distributed by the probate court ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
Social security survivor's benefits typically provide benefits for unmarried children through [ high school | college ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

When a primary beneficiary dies before the insured, the death benefits are payable to the:

Accepted Answer

A)  state. 
B)  probate court. 
C)  contingent beneficiaries. 
D)  insured's estate. 
E)  insurer. 
A)  state. 
B)  probate court. 
C)  contingent beneficiaries. 
D)  insured's estate. 
E)  insurer.

Question 15

The primary purpose of life insurance is to provide a tax-advantaged investment plan.

Accepted Answer

A) True 
 B)False

Question 16

Underwriters use life expectancy figures to look at overall longevity for various age groups and also consider specific factors related to an applicant's health.

Accepted Answer

A) True 
 B)False

Question 17

The fastest-growing source of life insurance quotes and policies in recent years is the Internet.

Accepted Answer

A) True 
 B)False

Question 18

Unbundling in universal life insurance means that the death protection and savings portions are identified separately in its premium.

Accepted Answer

A) True 
 B)False

Question 19

Group life insurance is:

Accepted Answer

A)  a term policy designed to pay off the mortgage balance in the event of the borrower's death. 
B)  insurance that is sold in conjunction with the sale of a group of assets. 
C)  insurance in which benefits are a function of the returns being generated on the investments selected by the policyholder. 
D)  insurance that provides a master policy for a group. 
E)  insurance that issues many master policies for an insured. 
A)  a term policy designed to pay off the mortgage balance in the event of the borrower's death. 
B)  insurance that is sold in conjunction with the sale of a group of assets. 
C)  insurance in which benefits are a function of the returns being generated on the investments selected by the policyholder. 
D)  insurance that provides a master policy for a group. 
E)  insurance that issues many master policies for an insured.

Question 20

The waiver-of-premium benefit excuses premium payments while the insured is experiencing short-term illness.

Accepted Answer

A) True 
 B)False

The death benefit of a(n) _____ life insurance policy may decrease because of poor investment returns.

_____ insurance is generally sold in conjunction with installment loans.

Which of the following characterizes whole life insurance?

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. Credit life insurance is generally considered to be a [ good | poor ] life insurance buy.

Which of the following leads to the payment of a higher insurance premium by the potential insured?

Your need for additional life insurance can be determined by looking at the difference between your family's available financial resources after your death and your family's total economic needs.

It can be difficult to evaluate the true cost of a _____ policy at the time of purchase.

While using the needs analysis approach to determine how much life insurance to purchase, you should:

Which of the following statements regarding insurance underwriting is true?

Insurance companies use _____ to determine whom they will insure and what they will charge for insurance coverage.

A grace period permits a policyholder to retain full death protection for usually _____ after a premium payment date is missed.

When a primary beneficiary dies before the insured, the death benefits are payable to the:

The primary purpose of life insurance is to provide a tax-advantaged investment plan.

Underwriters use life expectancy figures to look at overall longevity for various age groups and also consider specific factors related to an applicant's health.

The fastest-growing source of life insurance quotes and policies in recent years is the Internet.

Unbundling in universal life insurance means that the death protection and savings portions are identified separately in its premium.

Group life insurance is:

The waiver-of-premium benefit excuses premium payments while the insured is experiencing short-term illness.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 8: Insuring Your Life

The death benefit of a(n) _____ life insurance policy may decrease because of poor investment returns.

_____ insurance is generally sold in conjunction with installment loans.

Which of the following characterizes whole life insurance?

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. Credit life insurance is generally considered to be a [ good | poor ] life insurance buy.

Which of the following leads to the payment of a higher insurance premium by the potential insured?

Your need for additional life insurance can be determined by looking at the difference between your family's available financial resources after your death and your family's total economic needs.

It can be difficult to evaluate the true cost of a _____ policy at the time of purchase.

While using the needs analysis approach to determine how much life insurance to purchase, you should:

Which of the following statements regarding insurance underwriting is true?

Insurance companies use _____ to determine whom they will insure and what they will charge for insurance coverage.

A grace period permits a policyholder to retain full death protection for usually _____ after a premium payment date is missed.

When a primary beneficiary dies before the insured, the death benefits are payable to the:

The primary purpose of life insurance is to provide a tax-advantaged investment plan.

Underwriters use life expectancy figures to look at overall longevity for various age groups and also consider specific factors related to an applicant's health.

The fastest-growing source of life insurance quotes and policies in recent years is the Internet.

Unbundling in universal life insurance means that the death protection and savings portions are identified separately in its premium.

Group life insurance is:

The waiver-of-premium benefit excuses premium payments while the insured is experiencing short-term illness.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters