Question 1

The premium for noncancelable and guaranteed renewable coverage is higher,but the coverages are well worth the extra cost.

Accepted Answer

A) True 
 B)False

Question 2

Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.

Accepted Answer

A) True 
 B)False

Question 3

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 D)
G) D) and E)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Canadians are amongst the least life-insured people in the world.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The incontestability clause stipulates that the insurance company can dispute the validity of the policy during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 8

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die,which type of insurance would provide money for your final medical costs?

Accepted Answer

A)   Life insurance
B)   Critical illness insurance
C)   Professional insurance
D)   House insurance
E)   Long-term careF) D) and E)
G) A) and B)

Question 9

A method of evaluating the cost of life insurance by taking into account the time value of money is called

Accepted Answer

A)   double indemnity.
B)   guaranteed insurability.
C)   an interest-adjusted index.
D)   the consumer price index.
E)   a present value index.F) D) and E)
G) B) and C)

Question 10

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 11

Just about every worker is covered by disability income insurance.

Accepted Answer

A) True 
 B)False

Question 12

Life insurance premiums are determined basically by the

Accepted Answer

A)   forces of supply.
B)   forces of demand.
C)   forces of competition.
D)   use of mortality tables.
E)   guesswork of insurance executives.F) C) and D)
G) All of the above

Question 13

Which of the following statements is correct for term insurance?

Accepted Answer

A)   Premiums for term insurance remain constant.
B)   Term insurance is protection for a specified period of time.
C)   Term insurance has cash value.
D)   Term insurance is usually more expensive than whole life insurance.
E)   Not available in a form that pays less to the beneficiaries as time passes.F) A) and C)
G) D) and E)

Question 14

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

Accepted Answer

Life insurance is a contract between an ...

Question 15

Single persons living alone have little or no need for life insurance.

Accepted Answer

A) True 
 B)False

Question 16

What are important provisions in most life insurance policies?

Accepted Answer

The naming of the beneficiary,the grace ...

Question 17

In planning your insurance program,you should

Accepted Answer

A)   seek advice from a competent financial adviser.
B)   determine what insurance is required.
C)   consider social security and other group insurance.
D)   decide what type of insurance best meets your needs.
E)   seek advice from a competent financial adviser,determine what insurance is required,consider social security and other group insurance,and decide what type of insurance best meets your needs.F) C) and E)
G) B) and E)

Question 18

A deductible is the amount the policyholder must pay before the policy benefits begin.

Accepted Answer

A) True 
 B)False

Question 19

The method of determining life insurance requirements that does not ignore such important factors as emergency funds and your liquid assets is called the

Accepted Answer

A)   easy method.
B)   "family need" method
C)   DINK method.
D)   "nonworking" spouse method.
E)   hard method.F) A) and E)
G) A) and B)

Question 20

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 D)
G) B) and E)

Exam 9: Health and Disability Income Insurance

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

Correct AnswerverifiedShow Answer

Life insurance premiums are determined basically by the

Correct AnswerverifiedShow Answer

The method of determining life insurance requirements that does not ignore such important factors as emergency funds and your liquid assets is called the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A deductible is the amount the policyholder must pay before the policy benefits begin.

Correct AnswerverifiedShow Answer

Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.

Correct AnswerverifiedShow Answer

A participating life insurance policy has

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

The incontestability clause stipulates that the insurance company can dispute the validity of the policy during the insured's lifetime.

Correct AnswerverifiedShow Answer

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die,which type of insurance would provide money for your final medical costs?

Correct AnswerverifiedShow Answer

What are important provisions in most life insurance policies?

Correct AnswerverifiedThe naming of the beneficiary,the grace ...View AnswerShow Answer

In planning your insurance program,you should

Correct AnswerverifiedShow Answer

A method of evaluating the cost of life insurance by taking into account the time value of money is called

Correct AnswerverifiedShow Answer

Which of the following statements is correct for term insurance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Canadians are amongst the least life-insured people in the world.

Correct AnswerverifiedShow Answer

The premium for noncancelable and guaranteed renewable coverage is higher,but the coverages are well worth the extra cost.

Correct AnswerverifiedShow Answer

Just about every worker is covered by disability income insurance.

Correct AnswerverifiedShow Answer

Single persons living alone have little or no need for life insurance.

Correct AnswerverifiedShow Answer

Correct Answer
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Life insurance is a contract between an ...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The naming of the beneficiary,the grace ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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