Question 1

Which of the following is the most common settlement option?

Accepted Answer

A)   life income option.
B)   limited installment payment.
C)   lump-sum payment.
D)   variable installment payment.
E)   proceeds left with the company.F) A) and B)
G) C) and D)

Question 2

Suppose you are a typical family. Your annual income is $60,000. Use the income replacement method to determine your need for life insurance. Your insurance should be in the amount of

Accepted Answer

A)   $245,000.
B)   $294,000.
C)   $345,000.
D)   $400,000.
E)   $450,000.F) B) and D)
G) A) and B)

Question 3

Group health insurance covers all of your health insurance needs.

Accepted Answer

A) True 
 B)False

Question 4

Most people are more likely to lose their income due to death than due to disability.

Accepted Answer

A) True 
 B)False

Question 5

The easy method of estimating life insurance requirements is remarkably useful.

Accepted Answer

A) True 
 B)False

Question 6

After you buy new life insurance you have a "free look" period of ______ days.

Accepted Answer

A)   10
B)   7
C)   21
D)   30
E)   28F) A) and C)
G) A) and B)

Question 7

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following items are required in calculating your life insurance need?

Accepted Answer

A)   annual income and approximate expenses.
B)   emergency fund.
C)   financial needs.
D)   liquid assets.
E)   annual income and approximate expenses, emergency fund, financial needs, and liquid assets.F) D) and E)
G) A) and C)

Question 9

Suicide clause means that the insurance company

Accepted Answer

A)   can cancel the policy if age has been misstated.
B)   will pay the death benefit equal to the amount of the premium paid, if the insured dies during the first two years that the policy is in force.
C)   allows the insured to pay premiums in installments.
D)   automatically pays the premium out of the policy's cash value.E) B) and D)
F) B) and C)

Question 10

Group health insurance plans comprise about 60 percent of all health insurance issued by health and life insurance companies.

Accepted Answer

A) True 
 B)False

Question 11

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

Accepted Answer

A)   one
B)   ten
C)   thirty
D)   sixty
E)   ninetyF) B) and C)
G) A) and C)

Question 12

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

Accepted Answer

A)   Comprehensive major medical
B)   Major medical expense
C)   Physician's expense
D)   Disability income
E)   Surgical expenseF) C) and E)
G) B) and C)

Question 13

Disability income benefits begin on the 10th day you are disabled.

Accepted Answer

A) True 
 B)False

Question 14

The whole life policy is an insurance plan for which the policyholder

Accepted Answer

A)   pays a specified premium each year for as long as he or she lives
B)   is also called a straight life policy
C)   is also called a cash-value life policy
D)   is also called an ordinary life policy
E)   all the answers are correctF) C) and D)
G) A) and B)

Question 15

Which of the following will be used to determine a term insurance policy?

Accepted Answer

A)   age at which people will die.
B)   number of people who will die this year.
C)   number of people who will buy insurance this year.
D)   number of agents who sell life insurance.
E)   number of accidents in the regionF) A) and D)
G) D) and E)

Question 16

You wish to build up a cash surrender value within your life insurance policy. Which of the following types of life insurance would permit you to do so? 
I. Whole Life Insurance
II. Term-to-100 Insurance
III. Universal Life Insurance
IV. Declining Term Insurance

Accepted Answer

A)   I and III only
B)   I, II and III only
C)   IV only
D)   I, III and IV only
E)   I and II onlyF) A) and B)
G) None of the above

Question 17

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Accepted Answer

A) True 
 B)False

Question 18

Universal life is a type of permanent life insurance

Accepted Answer

A) True 
 B)False

Question 19

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

Accepted Answer

A) True 
 B)False

Question 20

What is life insurance? What is its purpose and principle?

Accepted Answer

Life insurance is a contract between an ...

Exam 9: Life, Health, and Disability Insurance

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Correct AnswerverifiedShow Answer

Which of the following will be used to determine a term insurance policy?

Correct AnswerverifiedShow Answer

Group health insurance covers all of your health insurance needs.

Correct AnswerverifiedShow Answer

Suppose you are a typical family. Your annual income is $60,000. Use the income replacement method to determine your need for life insurance. Your insurance should be in the amount of

Correct AnswerverifiedShow Answer

Most people are more likely to lose their income due to death than due to disability.

Correct AnswerverifiedShow Answer

Which of the following is the most common settlement option?

Correct AnswerverifiedShow Answer

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

Correct AnswerverifiedShow Answer

The whole life policy is an insurance plan for which the policyholder

Correct AnswerverifiedShow Answer

Suicide clause means that the insurance company

Correct AnswerverifiedShow Answer

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

Correct AnswerverifiedShow Answer

You wish to build up a cash surrender value within your life insurance policy. Which of the following types of life insurance would permit you to do so? I. Whole Life Insurance II. Term-to-100 Insurance III. Universal Life Insurance IV. Declining Term Insurance

Correct AnswerverifiedShow Answer

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

Correct AnswerverifiedShow Answer

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

Correct AnswerverifiedShow Answer

What is life insurance? What is its purpose and principle?

Correct AnswerverifiedLife insurance is a contract between an ...View AnswerShow Answer

Group health insurance plans comprise about 60 percent of all health insurance issued by health and life insurance companies.

Correct AnswerverifiedShow Answer

Which of the following items are required in calculating your life insurance need?

Correct AnswerverifiedShow Answer

After you buy new life insurance you have a "free look" period of ______ days.

Correct AnswerverifiedShow Answer

Disability income benefits begin on the 10th day you are disabled.

Correct AnswerverifiedShow Answer

Universal life is a type of permanent life insurance

Correct AnswerverifiedShow Answer

The easy method of estimating life insurance requirements is remarkably useful.

Correct AnswerverifiedShow Answer

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Life insurance is a contract between an ...
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Disability income benefits begin on the 10^th day you are disabled.

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