Question 1

Blue Cross/Blue Shield health insurance plans:

Accepted Answer

A)  Pay based on the indemnity principle 
B)  Offer coverage on a pre-paid basis 
C)  Do not require the insured to satisfy deductibles or coinsurance clauses 
D)  Only pay for services with participating hospitals and doctors 
E)  Are profit-oriented 
A)  Pay based on the indemnity principle 
B)  Offer coverage on a pre-paid basis 
C)  Do not require the insured to satisfy deductibles or coinsurance clauses 
D)  Only pay for services with participating hospitals and doctors 
E)  Are profit-oriented B

Question 2

Explain the systematic basis for insuring unscheduled personal property.

Accepted Answer

The following is a guideline for insuring unscheduled personal property:
1. Market Value
This refers to those personal household contents which are not specifically listed by name and value in the policy. The homeowner's policy provides insurance on these items equal to 50 percent of the amount of insurance on the house. Certain types of property are excluded from coverage under homeowner's insurance, and special limits of liability exist on other types of property.
2. Replacement Cost
For an additional premium representing 5-15 percent of the policy's total premium, the homeowner can receive the actual replacement cost versus fair market value of a destroyed or stolen item.
3. Floater Policies
The personal articles floater provides all-risk protection for each article specified on the face of the policy. In contrast, a personal property floater offers protection on all articles on a worldwide basis.

Question 3

Which of the following is a major type of health insurance organization?

Accepted Answer

A)  Standard & Poor's 
B)  Federal Emerging Management Agency 
C)  Preferred Provider Organizations, or PPO's 
D)  Health Insurance Association of America 
E)  Medicare Incorporated 
A)  Standard & Poor's 
B)  Federal Emerging Management Agency 
C)  Preferred Provider Organizations, or PPO's 
D)  Health Insurance Association of America 
E)  Medicare Incorporated C

Question 4

Roger Stern is in serious financial difficulty as a result of his buying a very expensive home. Since his family (wife and a two-year-old son) is in excellent health, and Roger needs to drastically cut his budget, he has decided to cancel his major medical insurance for five years. Do you have any suggestion for Roger?

Accepted Answer

Most certainly. The best strategy is to

Question 5

What is a coinsurance clause?

Accepted Answer

In order to receive full payment for any

Question 6

Your client owns a $500,000 HO-5 policy on their home. They experienced extensive damage on the unattached garage. Assuming that the couple does not own an endorsement for additional coverage what is the standard limit of coverage on the loss?

Accepted Answer

A)  $50,000 
B)  $100,000 
C)  $150,000 
D)  $250,000 
E)  $500,000 
A)  $50,000 
B)  $100,000 
C)  $150,000 
D)  $250,000 
E)  $500,000

Question 7

Are there significant gaps in Medicare coverage? How can these gaps be filled?

Accepted Answer

Medicare does not cover the biggest cata

Question 8

When would long-term care benefits typically be available? What conditions need to be met?

Accepted Answer

The benefit for covered long-term care m

Question 9

In customizing a long-term care policy for the client, what range of services can be considered?

Accepted Answer

Services that might be covered under the

Question 10

Contrast any job vs. own occupation definition of disability insurance.

Accepted Answer

Most definitions of disability fall into

Question 11

Describe the major types of health insurance.

Accepted Answer

The following are the major types of hea

Question 12

Contrast HMOs with PPOs.

Accepted Answer

HMOs operate on a prepaid basis. In most

Question 13

Joe's employer provides disability income benefits for all employees. The employer, not the employee, pays the entire premium. Disability income benefits received under this non-contributory plan are:

Accepted Answer

A)  Taxed at capital gain rates 
B)  Tax free 
C)  Taxed at ordinary income rates 
D)  Taxed at disability income rates 
A)  Taxed at capital gain rates 
B)  Tax free 
C)  Taxed at ordinary income rates 
D)  Taxed at disability income rates

Question 14

Which of the following policies does not provide liability insurance protection?

Accepted Answer

A)  Homeowner's 
B)  Disability 
C)  Automobile 
D)  Umbrella 
E)  All of the above provide liability protection 
A)  Homeowner's 
B)  Disability 
C)  Automobile 
D)  Umbrella 
E)  All of the above provide liability protection

Question 15

You own an auto liability policy with 150/250/50 limits. You accidentally run into a 45-foot semi-trailer. The trailer is totally destroyed and was valued at $70,000. After your insurance company settles your claim, you would still owe:

Accepted Answer

A)  $0 
B)  $10,000 
C)  $20,000 
D)  $30,000 
E)  None of the above are correct answers 
A)  $0 
B)  $10,000 
C)  $20,000 
D)  $30,000 
E)  None of the above are correct answers

Question 16

Which of the following homeowner's policies offers the most protections?

Accepted Answer

A)  HO-2 
B)  HO-3 
C)  HO-1 
D)  HO-5 
E)  HO-6 
A)  HO-2 
B)  HO-3 
C)  HO-1 
D)  HO-5 
E)  HO-6

Question 17

Property damage liability insurance Part A under an auto policy) will not cover:

Accepted Answer

A)  Any damage to your own car 
B)  Damage to a friend's home if you accidentally drive through it 
C)  Damage to a friend's car if your son runs it over 
D)  Damage to items in your friend's car if you damage them with your car 
E)  Any of the above items 
A)  Any damage to your own car 
B)  Damage to a friend's home if you accidentally drive through it 
C)  Damage to a friend's car if your son runs it over 
D)  Damage to items in your friend's car if you damage them with your car 
E)  Any of the above items

Question 18

Which of the following is an advantage of choosing an auto insurance policy that has a higher deductible?

Accepted Answer

A)  Increased total protection 
B)  More extensive coverage against lawsuits 
C)  Lower premiums 
D)  Better all around coverage 
E)  None of the above are true statements 
A)  Increased total protection 
B)  More extensive coverage against lawsuits 
C)  Lower premiums 
D)  Better all around coverage 
E)  None of the above are true statements

Question 19

Private long-term health care coverage:

Accepted Answer

A)  Fills many of the gaps in Medicare coverage 
B)  Should have such features as guaranteed renewability, home care, inflation protection, and Alzheimer's coverage 
C)  May include such features as waiver of premiums in the event of disability, an inflation rider, guaranteed renewability, and level premium for life 
D)  Can be expensive for some people who need it 
E)  All of the above are true statements 
A)  Fills many of the gaps in Medicare coverage 
B)  Should have such features as guaranteed renewability, home care, inflation protection, and Alzheimer's coverage 
C)  May include such features as waiver of premiums in the event of disability, an inflation rider, guaranteed renewability, and level premium for life 
D)  Can be expensive for some people who need it 
E)  All of the above are true statements

Question 20

A Preferred Provider Organization PPO:

Accepted Answer

A)  Is presently available to all employees 
B)  Requires an employee to see a specific doctor 
C)  Prepays all medical expenses 
D)  Provides a partial reimbursement if the employee uses a specific doctor or hospital outside of the approved list 
E)  None of the above statements are true 
A)  Is presently available to all employees 
B)  Requires an employee to see a specific doctor 
C)  Prepays all medical expenses 
D)  Provides a partial reimbursement if the employee uses a specific doctor or hospital outside of the approved list 
E)  None of the above statements are true

Blue Cross/Blue Shield health insurance plans:

Explain the systematic basis for insuring unscheduled personal property.

Which of the following is a major type of health insurance organization?

What is a coinsurance clause?

Your client owns a $500,000 HO-5 policy on their home. They experienced extensive damage on the unattached garage. Assuming that the couple does not own an endorsement for additional coverage what is the standard limit of coverage on the loss?

Are there significant gaps in Medicare coverage? How can these gaps be filled?

When would long-term care benefits typically be available? What conditions need to be met?

In customizing a long-term care policy for the client, what range of services can be considered?

Contrast any job vs. own occupation definition of disability insurance.

Describe the major types of health insurance.

Contrast HMOs with PPOs.

Joe's employer provides disability income benefits for all employees. The employer, not the employee, pays the entire premium. Disability income benefits received under this non-contributory plan are:

Which of the following policies does not provide liability insurance protection?

You own an auto liability policy with 150/250/50 limits. You accidentally run into a 45-foot semi-trailer. The trailer is totally destroyed and was valued at $70,000. After your insurance company settles your claim, you would still owe:

Which of the following homeowner's policies offers the most protections?

Property damage liability insurance Part A under an auto policy) will not cover:

Which of the following is an advantage of choosing an auto insurance policy that has a higher deductible?

Private long-term health care coverage:

A Preferred Provider Organization PPO:

Emerging Role of the Financial Planner

Personal Financial Planning Process

Time Value of Money: The Universal Tool

Life Insurance: Structure, Concepts, and Planning Strategies

Cash Management, Savings, Credit, and Debt Planning

Educational Planning

Investment Products and Markets: an Introduction

Investment Management: Concepts and Strategies

Investment Planning Strategies

Basic Federal Income Tax Structure

Tax Planning: Concepts and Strategies

Basic Structure of Retirement Income

Retirement Planning: Concepts and Strategies

Basic Structure of Estate Planning

Estate Planning: Concepts and Strategies

Comprehensive Financial Plan

Divorce: Financial Planning Implications

Planning for Widows

Planning for Nontraditional Families

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Exam 5: Health, Homeowners, Automobile, and Liability Insurance: Structure, Concepts, and Planning

Blue Cross/Blue Shield health insurance plans:

Explain the systematic basis for insuring unscheduled personal property.

Which of the following is a major type of health insurance organization?

What is a coinsurance clause?

Your client owns a $500,000 HO-5 policy on their home. They experienced extensive damage on the unattached garage. Assuming that the couple does not own an endorsement for additional coverage what is the standard limit of coverage on the loss?

Are there significant gaps in Medicare coverage? How can these gaps be filled?

When would long-term care benefits typically be available? What conditions need to be met?

In customizing a long-term care policy for the client, what range of services can be considered?

Contrast any job vs. own occupation definition of disability insurance.

Describe the major types of health insurance.

Contrast HMOs with PPOs.

Joe's employer provides disability income benefits for all employees. The employer, not the employee, pays the entire premium. Disability income benefits received under this non-contributory plan are:

Which of the following policies does not provide liability insurance protection?

You own an auto liability policy with 150/250/50 limits. You accidentally run into a 45-foot semi-trailer. The trailer is totally destroyed and was valued at $70,000. After your insurance company settles your claim, you would still owe:

Which of the following homeowner's policies offers the most protections?

Property damage liability insurance Part A under an auto policy) will not cover:

Which of the following is an advantage of choosing an auto insurance policy that has a higher deductible?

Private long-term health care coverage:

A Preferred Provider Organization PPO:

Emerging Role of the Financial Planner

Personal Financial Planning Process

Time Value of Money: The Universal Tool

Life Insurance: Structure, Concepts, and Planning Strategies

Cash Management, Savings, Credit, and Debt Planning

Educational Planning

Investment Products and Markets: an Introduction

Investment Management: Concepts and Strategies

Investment Planning Strategies

Basic Federal Income Tax Structure

Tax Planning: Concepts and Strategies

Basic Structure of Retirement Income

Retirement Planning: Concepts and Strategies

Basic Structure of Estate Planning

Estate Planning: Concepts and Strategies

Comprehensive Financial Plan

Divorce: Financial Planning Implications

Planning for Widows

Planning for Nontraditional Families

Filters