Question 1

Term insurance is protection for a specified period of time,usually:

Accepted Answer

A)  1 year
B)  5 years
C)  10 years
D)  20 years
E)  Any of these intervals are offeredF) None of the above
G) C) and D)

Question 2

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance?

Accepted Answer

A)  Marital status
B)  Gender
C)  Health
D)  Age
E)  OccupationF) D) and E)
G) B) and C)

Question 3

If you have no dependents and your spouse earns as much as you do,you have simple insurance needs.

Accepted Answer

A) True 
 B)False

Question 4

After determining that you need life insurance,you should then:

Accepted Answer

A)  consult a local insurance company agent.
B)  buy as much life insurance as you can afford.
C)  estimate your life insurance requirements.
D)  determine your life insurance objectives.
E)  evaluate the ratings of the insurance company.F) A) and C)
G) A) and B)

Question 5

Who has the greatest need for life insurance?

Accepted Answer

A)  Households with small children
B)  Singles living alone
C)  Singles living with parents
D)  Dual income couple
E)  Retired personF) A) and B)
G) A) and E)

Question 6

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to:

Accepted Answer

A)  buy the policy anyway.
B)  look for another agent.
C)  tell the agent that you are still thinking.
D)  tell the agent you will buy it later.
E)  complain to the Better Business Bureau.F) A) and D)
G) A) and B)

Question 7

Lisa Smith has her age listed on her driver's license as being three years younger than it actually is.This is also how old she tells her insurance company she is.Her insurance company has discovered she lied about her age.What provision of her life insurance contract states that her benefits will be what her premium would have bought if she had been truthful about her age?

Accepted Answer

A)  Policy loan
B)  Misstatement of age
C)  Cost-of-living protection
D)  Guaranteed insurability
E)  Grace periodF) A) and D)
G) A) and B)

Question 8

One of the ten golden rules when buying life insurance is to:

Accepted Answer

A)  buy from a company licensed in your state.
B)  buy more life insurance than you need.
C)  select an agent who is incompetent.
D)  ask about higher premium rates for nonsmokers.
E)  not worry about reading and understanding your policy.F) A) and B)
G) B) and C)

Question 9

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

Accepted Answer

A)  58
B)  68
C)  78
D)  88
E)  98F) D) and E)
G) A) and D)

Question 10

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Accepted Answer

A)  The multiple of income method
B)  Easy method
C)  "Nonworking" spouse method
D)  Family need method
E)  DINK methodF) B) and C)
G) B) and D)

Question 11

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

Accepted Answer

A) True 
 B)False

Question 12

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Accepted Answer

A)  a 30-year-old female has the highest probability of dying.
B)  a 30-year-old female has the highest probability of living.
C)  females alive at 30 years of age are expected to live an additional 52 years on average.
D)  52.0 is the average age at which all females,age 30,will die.
E)  very few 30-year-old females will live past the age of 82.F) A) and E)
G) None of the above

Question 13

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which statement is correct about whole life insurance?

Accepted Answer

A)  At first,it is cheaper than term life.
B)  It builds up cash value.
C)  The premiums increase with your age.
D)  It is the best choice for people who plan to keep the policy for a short term.
E)  It is the same thing as term life insurance.F) A) and E)
G) C) and D)

Question 16

Most participating policies are sold by:

Accepted Answer

A)  federal government agencies.
B)  state insurance commissioners.
C)  mutual life insurance companies.
D)  stock life insurance companies.
E)  investment banks.F) None of the above
G) D) and E)

Question 17

A two-earner couple likely will 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)  the exact same life insurance needs as single persons living alone.F) A) and C)
G) A) and B)

Question 18

Households with small children usually have the greatest need for life insurance.

Accepted Answer

A) True 
 B)False

Question 19

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Accepted Answer

A)  Easy method
B)  DINK method
C)  Nonworking spouse method
D)  Family need method
E)  Soccer mom methodF) B) and C)
G) A) and C)

Question 20

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs?

Accepted Answer

A)  Easy method
B)  DINK method
C)  Nonworking spouse method
D)  Family need method
E)  Soccer mom methodF) C) and E)
G) A) and D)

Exam 12: Life Insurance

Who has the greatest need for life insurance?

Correct Answer
verified

Households with small children usually have the greatest need for life insurance.

Correct Answer
verified

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

Correct Answer
verified

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Correct Answer
verified

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance?

Correct Answer
verified

Term insurance is protection for a specified period of time,usually:

Correct Answer
verified

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

Correct Answer
verified

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Correct Answer
verified

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Correct Answer
verified

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Correct Answer
verified

Which statement is correct about whole life insurance?

Correct Answer
verified

Correct Answer
verified

If you have no dependents and your spouse earns as much as you do,you have simple insurance needs.

Correct Answer
verified

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

Correct Answer
verified

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to:

Correct Answer
verified

After determining that you need life insurance,you should then:

Correct Answer
verified

A two-earner couple likely will have:

Correct Answer
verified

One of the ten golden rules when buying life insurance is to:

Correct Answer
verified

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs?

Correct Answer
verified

Most participating policies are sold by:

Correct Answer
verified

Exam 12: Life Insurance

Who has the greatest need for life insurance?

Correct AnswerverifiedShow Answer

Households with small children usually have the greatest need for life insurance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Correct AnswerverifiedShow Answer

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance?

Correct AnswerverifiedShow Answer

Term insurance is protection for a specified period of time,usually:

Correct AnswerverifiedShow Answer

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

Correct AnswerverifiedShow Answer

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Correct AnswerverifiedShow Answer

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Correct AnswerverifiedShow Answer

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Correct AnswerverifiedShow Answer

Which statement is correct about whole life insurance?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If you have no dependents and your spouse earns as much as you do,you have simple insurance needs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to:

Correct AnswerverifiedShow Answer

After determining that you need life insurance,you should then:

Correct AnswerverifiedShow Answer

A two-earner couple likely will have:

Correct AnswerverifiedShow Answer

One of the ten golden rules when buying life insurance is to:

Correct AnswerverifiedShow Answer

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs?

Correct AnswerverifiedShow Answer

Most participating policies are sold by:

Correct AnswerverifiedShow Answer

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verified

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