Question 1

Your second step in determining a life insurance program should be to

Accepted Answer

A)   consult a local insurance company agent.
B)   consider whether you wish to leave your dependants debt free
C)   estimate your life insurance requirements.
D)   determine your life insurance objectives.
E)   evaluate the ratings of the insurance company.F) C) and E)
G) A) and D)

Question 2

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Accepted Answer

A) True 
 B)False

Question 3

What factors should you consider before you buy insurance?

Accepted Answer

A)   your present and future sources of income
B)   your savings
C)   group life insurance
D)   pension benefits
E)   your present and future sources of income, your savings, group life insurance, and pension benefits.F) A) and D)
G) A) and E)

Question 4

Which type of insurance is probably the most neglected form of available insurance protection?

Accepted Answer

A)   life
B)   liability
C)   disability
D)   car
E)   home and propertyF) B) and E)
G) A) and C)

Question 5

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n)

Accepted Answer

A)   beneficiary.
B)   waiver of premium.
C)   automatic premium loan.
D)   rider.
E)   incontestability clause.F) B) and E)
G) A) and E)

Question 6

You should seek a disability policy that pays benefits for life.

Accepted Answer

A) True 
 B)False

Question 7

Which type of life insurance plan requires you to pay premiums for a stipulated period, usually 20 or 30 years or until you reach a specified age?

Accepted Answer

A)   modified life policy
B)   variable life policy
C)   adjustable life policy
D)   limited payment policy
E)   endowment policyF) A) and E)
G) C) and D)

Question 8

A participating life insurance policy has

Accepted Answer

A)   lower premiums than a nonparticipating policy.
B)   about the same premium as the nonparticipating policy.
C)   been declared illegal in many states.
D)   somewhat higher premiums than nonparticipating policy.
E)   has no potential for earning dividends.F) B) and E)
G) B) and D)

Question 9

A two-earner couple may have

Accepted Answer

A)   the greatest need for life insurance.
B)   no need for life insurance.
C)   a moderate need for life insurance, especially if they have a mortgage.
D)   the greatest need for an annuity.
E)   no need for an annuity.F) C) and E)
G) A) and D)

Question 10

Which of the following statements is true about group life insurance?

Accepted Answer

A)   Group life has been losing its popularity recently.
B)   Generally the cost of insurance is the same for each employee.
C)   Group insurance is not a good bargain for older employees regardless of age.
D)   Principles that apply to other forms of insurance do not apply to group life insurance.
E)   Not worth getting.F) D) and E)
G) A) and E)

Question 11

A co-payment provision requires the policyholder to share the expenses beyond the deductible amount.

Accepted Answer

A) True 
 B)False

Question 12

What can be offered with supplemental health and disability insurance? What are their benefits and limitations?

Accepted Answer

Your basic coverage should include hospi...

Question 13

You probably have little or no need for life insurance if you are

Accepted Answer

A)   married and your spouse works.
B)   divorced and have two children.
C)   a single person living alone or with parents.
D)   gainfully employed.
E)   a household with several children.F) B) and D)
G) A) and B)

Question 14

Individual health insurance covers either one person or family.

Accepted Answer

A) True 
 B)False

Question 15

Who has the greatest need for life insurance?

Accepted Answer

A)   children
B)   singles living alone
C)   singles living with parents
D)   dual income couple
E)   households with small childrenF) A) and C)
G) A) and E)

Question 16

What percent of all applicants who apply for life insurance are found to be insurable?

Accepted Answer

A)   58
B)   68
C)   85
D)   90
E)   98F) C) and D)
G) B) and E)

Question 17

Because you are young and healthy now, you may overlook the very real need for

Accepted Answer

A)   Disability income insurance.
B)   health insurance.
C)   Dental insurance.
D)   vision care insurance.
E)   liability insurance.F) B) and D)
G) None of the above

Question 18

What is disability income insurance? What are the sources of disability income?

Accepted Answer

Disability income insurance benefits pro...

Question 19

Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.

Accepted Answer

A) True 
 B)False

Question 20

Critical illness insurance does not usually cover __________________.

Accepted Answer

A)   cancer
B)   stroke
C)   HIV/AIDS
D)   blindness
E)   organ transplantF) B) and D)
G) D) and E)

Exam 9: Life, Health, and Disability Insurance

A co-payment provision requires the policyholder to share the expenses beyond the deductible amount.

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Critical illness insurance does not usually cover __________________.

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What is disability income insurance? What are the sources of disability income?

Correct AnswerverifiedDisability income insurance benefits pro...View AnswerShow Answer

A two-earner couple may have

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What percent of all applicants who apply for life insurance are found to be insurable?

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A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n)

Correct AnswerverifiedShow Answer

Who has the greatest need for life insurance?

Correct AnswerverifiedShow Answer

Which type of life insurance plan requires you to pay premiums for a stipulated period, usually 20 or 30 years or until you reach a specified age?

Correct AnswerverifiedShow Answer

Which of the following statements is true about group life insurance?

Correct AnswerverifiedShow Answer

Which type of insurance is probably the most neglected form of available insurance protection?

Correct AnswerverifiedShow Answer

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Correct AnswerverifiedShow Answer

You should seek a disability policy that pays benefits for life.

Correct AnswerverifiedShow Answer

Individual health insurance covers either one person or family.

Correct AnswerverifiedShow Answer

What factors should you consider before you buy insurance?

Correct AnswerverifiedShow Answer

Because you are young and healthy now, you may overlook the very real need for

Correct AnswerverifiedShow Answer

Your second step in determining a life insurance program should be to

Correct AnswerverifiedShow Answer

You probably have little or no need for life insurance if you are

Correct AnswerverifiedShow Answer

Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.

Correct AnswerverifiedShow Answer

What can be offered with supplemental health and disability insurance? What are their benefits and limitations?

Correct AnswerverifiedYour basic coverage should include hospi...View AnswerShow Answer

A participating life insurance policy has

Correct AnswerverifiedShow Answer

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Disability income insurance benefits pro...
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Your basic coverage should include hospi...
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Correct Answer
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