Exam 8: Insuring Your Life

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. A disadvantage of [ universal | term ] life insurance is that it usually carries heavy fees compared to other policy types.

(Short Answer)

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Question 81

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. In insurance terms, [ peril | risk ] is defined as uncertainty concerning a potential economic loss.

(Short Answer)

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Question 82

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 your insurance policy promises to pay death benefits only if you die during a specified time, you have [ term | whole ] life insurance.

(Short Answer)

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Question 83

The preferred technique for determining how much life insurance coverage is needed for an individual is to:

(Multiple Choice)

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Question 84

Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, is the primary beneficiary, and their children, Mimi (age 24) and Ann (age 30), are the contingent beneficiaries. All three survive Marilyn. How will the policy proceeds be distributed?

(Multiple Choice)

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Question 85

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. The life insurance policy that clearly separates the protection and savings elements is [ whole | universal ] life.

(Short Answer)

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Question 86

Through underwriting, insurance companies try to guard against:

(Multiple Choice)

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Question 87

Insurance agents are legally required to disclose their commissions in an insurance policy.

(True/False)

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Question 88

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. Deciding which people will be insured by an insurance company is a function of the [ agent | underwriter ].

(Short Answer)

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Question 89

The policy owner assumes the investment risk with a _____ insurance policy.

(Multiple Choice)

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Question 90

Avoiding alcoholic beverages while driving is an example of loss prevention.

(True/False)

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Question 91

The probability of a loss occurring can be reduced by:

(Multiple Choice)

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Question 92

Life insurance proceeds paid to your heirs are not generally subject to state or federal income taxes.

(True/False)

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Question 93

_____ is the choice to accept and bear the risk of loss.

(Multiple Choice)

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Question 94

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. Of the various whole life policies available, [ continuous premium | limited payment ] offers the greatest amount of permanent death protection and the least amount of savings per premium dollar.

(Short Answer)

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Question 95

It is advisable to purchase life insurance from an insurance company that has been in business for at least _____ years.

(Multiple Choice)

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Question 96

Underwriting refers to:

(Multiple Choice)

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Question 97

Which of the following is an example of loss control?

(Multiple Choice)

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Question 98

Group life insurance is usually term insurance.

(True/False)

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Question 99

The _____ method is a detailed method of determining the amount of life insurance coverage needed for an individual.

(Multiple Choice)

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Question 100

Showing 81 - 100 of 107

The preferred technique for determining how much life insurance coverage is needed for an individual is to:

Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, is the primary beneficiary, and their children, Mimi (age 24) and Ann (age 30), are the contingent beneficiaries. All three survive Marilyn. How will the policy proceeds be distributed?

Through underwriting, insurance companies try to guard against:

Insurance agents are legally required to disclose their commissions in an insurance policy.

The policy owner assumes the investment risk with a _____ insurance policy.

Avoiding alcoholic beverages while driving is an example of loss prevention.

The probability of a loss occurring can be reduced by:

Life insurance proceeds paid to your heirs are not generally subject to state or federal income taxes.

_____ is the choice to accept and bear the risk of loss.

It is advisable to purchase life insurance from an insurance company that has been in business for at least _____ years.

Underwriting refers to:

Which of the following is an example of loss control?

Group life insurance is usually term insurance.

The _____ method is a detailed method of determining the amount of life insurance coverage needed for an individual.

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

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