Question 1

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) C) and D)
G) B) and C)

Question 2

Individual health insurance covers either one person or family.

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 B)
G) None of the above

Question 4

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) B) and E)
G) B) and C)

Question 5

Critical illness insurance does not usually cover __________________.

Accepted Answer

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

Question 6

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) A) and E)
G) B) and C)

Question 7

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) A) and E)
G) B) and D)

Question 8

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) A) and E)
G) B) and D)

Question 9

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 10

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) A) and E)
G) C) and E)

Question 11

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) B) and D)
G) B) and C)

Question 12

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) A) and D)
G) A) and B)

Question 13

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 14

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) D) and E)
G) A) and B)

Question 15

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 16

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 D)
G) A) and B)

Question 17

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) B) and D)
G) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

Disability income insurance benefits pro...

Exam 9: Life, Health, and Disability Insurance

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

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

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

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

What factors should you consider before you buy insurance?

Correct AnswerverifiedShow Answer

Individual health insurance covers either one person or family.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Critical illness insurance does not usually cover __________________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Who has the greatest need for life insurance?

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

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A participating life insurance policy has

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Your basic coverage should include hospi...
View Answer

Correct Answer
verified

Correct Answer
verified
Disability income insurance benefits pro...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified