Question 1

An insured usually chooses variable life insurance in order to:

Accepted Answer

A)  provide more flexible coverage. 
B)  emphasize the savings portion while still having death protection. 
C)  lessen the savings feature of life insurance. 
D)  substitute for fixed-dollar insurance protection. 
E)  reduce insurance premiums. 
A)  provide more flexible coverage. 
B)  emphasize the savings portion while still having death protection. 
C)  lessen the savings feature of life insurance. 
D)  substitute for fixed-dollar insurance protection. 
E)  reduce insurance premiums.

Question 2

An insured may borrow or withdraw the cash value from the insurer when need for insurance protection has not yet lapsed.

Accepted Answer

A) True 
 B)False

Question 3

Choose the word or phrase in [ ] which 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.
-[Level premium | annual renewable] term policies have become much more popular in recent years.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

In a decreasing term policy,a level of protection is constant throughout all periods of coverage,while the level of premiums reduce consistently with each passing year.

Accepted Answer

A) True 
 B)False

Question 5

If a life insurance policy pays dividends,it is called a _____ policy.

Accepted Answer

A)  universal life 
B)  participating 
C)  investment grade 
D)  paid-up 
E)  extended 
A)  universal life 
B)  participating 
C)  investment grade 
D)  paid-up 
E)  extended

Question 6

Group life insurance is usually term life insurance.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which 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.
-An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

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

Accepted Answer

A)  the state. 
B)  the probate court. 
C)  the insured's estate. 
D)  the contingent beneficiary or beneficiaries. 
E)  the insurance company keeps the proceeds. 
A)  the state. 
B)  the probate court. 
C)  the insured's estate. 
D)  the contingent beneficiary or beneficiaries. 
E)  the insurance company keeps the proceeds.

Question 9

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

Accepted Answer

A) True 
 B)False

Question 10

From the standpoint of the person buying insurance,the central purpose of insurance should be:

Accepted Answer

A)  to collect for all accidental losses. 
B)  to transfer risks of serious losses. 
C)  to make profit out of uncertain future events. 
D)  to accumulate savings. 
E)  to reduce payments for the most frequently occurring losses. 
A)  to collect for all accidental losses. 
B)  to transfer risks of serious losses. 
C)  to make profit out of uncertain future events. 
D)  to accumulate savings. 
E)  to reduce payments for the most frequently occurring losses.

Question 11

Alice is 40 years old and earns $35,000 annually.The multiple of earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings.How much insurance should Alice have?

Accepted Answer

$35,000 ×

Question 12

The narrative summary of a life insurance policy should contain all the following except:

Accepted Answer

A)  policy description 
B)  underwriting discussion 
C)  column definitions 
D)  temporary coverage clause 
E)  disclaimer 
A)  policy description 
B)  underwriting discussion 
C)  column definitions 
D)  temporary coverage clause 
E)  disclaimer

Question 13

Choose the word or phrase in [ ] which 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 policy owner assumes the investment risk with a [whole life | variable life] insurance policy.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

Insurance is a tool that can lessen _____ risk.

Accepted Answer

A)  social 
B)  mental 
C)  economic 
D)  accident 
E)  exposure 
A)  social 
B)  mental 
C)  economic 
D)  accident 
E)  exposure

Question 15

The insurance portion of a universal life policy is most analogous to:

Accepted Answer

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

Question 16

A universal life insurance policy generally does not provide for a tax-sheltered savings platform.

Accepted Answer

A) True 
 B)False

Question 17

With traditional whole life policies sold by an agent,sales commissions and marketing expenses can increase the costs of a fully loaded policy.

Accepted Answer

A) True 
 B)False

Question 18

Choose the word or phrase in [ ] which 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 cash value would build more quickly with a [continuous | limited payment] whole life policy.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

Accepted Answer

A) True 
 B)False

Question 20

Choose the word or phrase in [ ] which 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.
-You would be most likely to assume the risk of a [small | large] potential loss.

Accepted Answer

The answer of Choose the word or phrase in [...

An insured usually chooses variable life insurance in order to:

An insured may borrow or withdraw the cash value from the insurer when need for insurance protection has not yet lapsed.

Choose the word or phrase in [ ] which 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. -[Level premium | annual renewable] term policies have become much more popular in recent years.

In a decreasing term policy,a level of protection is constant throughout all periods of coverage,while the level of premiums reduce consistently with each passing year.

If a life insurance policy pays dividends,it is called a _____ policy.

Group life insurance is usually term life insurance.

Choose the word or phrase in [ ] which 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. -An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

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

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

Alice is 40 years old and earns $35,000 annually.The multiple of earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings.How much insurance should Alice have?

The narrative summary of a life insurance policy should contain all the following except:

Choose the word or phrase in [ ] which 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 policy owner assumes the investment risk with a [whole life | variable life] insurance policy.

Insurance is a tool that can lessen _____ risk.

The insurance portion of a universal life policy is most analogous to:

A universal life insurance policy generally does not provide for a tax-sheltered savings platform.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses can increase the costs of a fully loaded policy.

Choose the word or phrase in [ ] which 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 cash value would build more quickly with a [continuous | limited payment] whole life policy.

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

Choose the word or phrase in [ ] which 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. -You would be most likely to assume the risk of a [small | large] potential loss.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

Planning for Retirement

Preserving Your Estate

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Exam 8: Insuring Your Life

An insured usually chooses variable life insurance in order to:

An insured may borrow or withdraw the cash value from the insurer when need for insurance protection has not yet lapsed.

Choose the word or phrase in [ ] which 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. -[Level premium | annual renewable] term policies have become much more popular in recent years.

In a decreasing term policy,a level of protection is constant throughout all periods of coverage,while the level of premiums reduce consistently with each passing year.

If a life insurance policy pays dividends,it is called a _____ policy.

Group life insurance is usually term life insurance.

Choose the word or phrase in [ ] which 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. -An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

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

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

Alice is 40 years old and earns $35,000 annually.The multiple of earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings.How much insurance should Alice have?

The narrative summary of a life insurance policy should contain all the following except:

Choose the word or phrase in [ ] which 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 policy owner assumes the investment risk with a [whole life | variable life] insurance policy.

Insurance is a tool that can lessen _____ risk.

The insurance portion of a universal life policy is most analogous to:

A universal life insurance policy generally does not provide for a tax-sheltered savings platform.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses can increase the costs of a fully loaded policy.

Choose the word or phrase in [ ] which 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 cash value would build more quickly with a [continuous | limited payment] whole life policy.

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

Choose the word or phrase in [ ] which 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. -You would be most likely to assume the risk of a [small | large] potential loss.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

Planning for Retirement

Preserving Your Estate

Filters