BUSI 223 Smartbook Chapter 10, 11 and 12 solutions complete answers

BUSI 223 Smartbook Chapter 10, 11 and 12 solutions complete answers

 

Flexible spending accounts allow you to contribute Blank______ dollars to an account managed by your employer.

 

______ work like HMOs, except the networks are managed by doctors and hospitals.

 

 was designed to provide medical assistance to groups or categories of persons who are eligible to receive payments under one of the cash assistance programs.

 

Copayment is the provision under which the insured pays a flat dollar amount each time a covered medical service is received.

 

-term care insurance provides day-in day-out care for extended illness or disability.

 

A "good" health insurance plan pays at least Blank______ percent of out-of-hospital expenses once a yearly deductible for the individual and family have been met.

 

Which type of insurance is the fastest growing type of insurance today?

 

Most of the money automobile insurance companies pay in claims goes for Blank______.

 

The main bodily injury coverages are bodily injury liability, mortgage payments coverage, and uninsured motorist protection.

 

True or false: Comparison shopping can usually help to lower the premiums on your homeowner's insurance policy.

 

True or false: Increasing your deductibles will increase your premiums for your homeowner's policy.

 

Most homeowner's policies cover many perils, but not:

 

True or false: Your homeowner's insurance covers damage to your home, other structures on your property, and your automobile.

 

Which of the following risks are covered by homeowner's insurance?

 

Which of the following are covered by a homeowner's policy?

 

Which of the following best defines homeowner's insurance?

 

Physical damage to a property is caused by hazards such as fire, wind, water, and smoke.

 

Wearing your seatbelt or installing smoke alarms would belong to the risk   technique of risk management.

 

People's risk management needs typically remain unchanged throughout their lives.

 

Examples of the risk reduction technique of risk management include Blank______.

 

Which of the following are examples of the risk reduction technique of risk management?

 

The protection against possible loss that gives you peace of mind is called:

 

Defective house wiring is an example of a(n)       that increases the chances of fire.

 

True or false: Risk management is a long-range financial planning process that helps reduce financial losses caused by destructive events.

 

Choosing never to sky-dive is an example of risk      .

 

Examples of risk reduction actions include:

 

Which of the following financial losses can you insure against?

 

Self-insurance is a risk       strategy that requires the establishment of a monetary fund to cover the cost of a loss.

 

Hazards increase the likelihood of a(n)       through a peril. This is a one word answer.

 

Shifting of risk is done through the purchase of an insurance       from an insurance company.

 

True or false: Risk management needs are consistent throughout one's life

 

A deductible is a set amount that the policyholder must pay ____ on an insurance policy.

 

Which of the following are risk reduction actions?

 

The goals of insurance include minimizing personal,      , and liability risks.

 

Wearing your seatbelt or installing smoke alarms would be risk      .

 

The main types of risks related to a home and an automobile are:

 

True or false: When we make a decision to assume risk, we are essentially self-insuring.

 

      damage to a property is caused by events such as fire, wind, water, and smoke.

 

Shifting of       is done through the purchase of an insurance policy.

 

Liability is the legal responsibility for the financial cost of another person's financial       or injuries. (Enter only one word per blank.)

 

A deductible is a combination of which of the following two risk management methods?

 

Which of the following risks are covered by home owner's insurance?

 

The goals of insurance include:

 

True or false: Your home owner's insurance covers damage to your home, other structures on your property, and your automobile

 

True or false: The main types of risks related to a home and an automobile are property damage and loss of income due to premature death.

 

True or false: A household inventory is a list or other documentation of personal belongings with purchase dates and cost information.

 

True or false: Physical damage to a property is caused by hazards or perils such as fire, wind, water, and smoke.

 

Which of the following are covered by renter's insurance?

 

      is the legal responsibility for the financial loss due to injuries to others or damage to property for which you are responsible.

 

The coverage of HO-3 policies includes which of the following perils?

 

Which of the following best defines home owner's insurance?

 

Which of the following are covered by a home owner's policy?

 

True or false: Lending institutions require home mortgage borrowers to have home insurance.

 

A household       is a list or other documentation of personal belongings, with purchase dates and cost information.

 

Your insurance protection for your home should be based on the amount needed to       or repair your house and not the amount you originally       for the home. (Enter only one word per blank.)

 

Insurance similar to homeowner's that is available for tenants is:

 

True or false: Increasing your deductibles will increase your premiums for your home owner's policy.

 

Most home owner's policies cover many perils, but not:

 

True or false: Comparison shopping can usually help to lower the premiums on your home owner's insurance policy.

 

The purpose of a financial responsibility law is to force drivers to:

 

Banks require home mortgage borrowers to have       insurance. This is a one word answer.

 

True or false: The main bodily injury coverages are bodily injury liability, mortgage payments coverage, and uninsured motorist's protection.

 

True or false: Insurance for your home should cover the amount you paid for the home.

 

True or false: The amount you can recover with collision insurance is limited to the wholesale value of your vehicle.

 

Increasing your       lowers your premium.

 

Wage loss insurance will reimburse you for:

 

You shouldn't select a company based on _____ alone.

 

The main factors that influence premiums for automobile insurance are:

 

A _________________ is state legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident.

 

What are some ways of reducing premiums on automobile insurance?

 

The main bodily injury coverages are:

 

Health insurance is one way people protect themselves against economic losses due to:

 

The amount you can collect with collision insurance is limited to the actual       value of the automobile at the time of the accident.

 

Which of the following factors has not been attributed to increasing health care costs?

 

Towing and emergency road service coverage pays for the cost of getting your vehicle to a

 

Identify ways in which you can personally reduce your health care costs.

 

True or false: Your driver classification is one of the main factors that affects the premium for your vehicle insurance.

 

If your health insurer has denied coverage for medical care you received, you have the right to       the claim decision.

 

True or false: Completing driver training and maintaining a safe driving record will help reduce your automobile insurance premiums.

 

What might a person who is uninsured experience during times of illness and injury?

 

Health insurance is one way people protect themselves against economic losses due to illness, accident, or disability.

 

A "good" health insurance plan pays what percentage of out-of-hospital expenses once a yearly deductible for the individual and family have been met?

 

What are some of the factors that have led to increasing health care costs?

 

By exercising, not smoking, getting rest, and driving carefully, individuals can greatly reduce their:

 

A combination of hospital expense insurance, physician expense insurance, and surgical expense insurance is called:

 

The first thing you should do if your health coverage claim has been denied is to:

 

      medical expense insurance pays most of the costs exceeding those covered by the hospital, surgical, and physician expense policies.

 

Health insurance provides       to alleviate the financial burden individuals suffer from illness or injury.

 

Coinsurance is a provision under which the ______ share the covered losses.

 

A good health insurance provides which of the following?

 

     -term care insurance describes assistance for people who are unable to care for themselves.

 

The added use of technology, use of prescription drugs, life expectancy of the elderly, and accidents and crimes all lead to        health care costs.

 

True or false: Copayment is the provision under which the insured pays a flat dollar amount each time a covered medical service is received after the deductible has been met.

 

Basic health insurance coverage is a combination of:

 

In terms of dollar amount or a number of days in the hospital, what determines the maximum amount paid?

 

Which type of insurance pays the larger expenses of a serious injury or long illness, including those covered by the hospital, surgical, and physician expense policies?

 

Most private insurance companies are providers of       health insurance policies through employers.

 

A provision under which the insurer and insured share the covered losses is called:

 

Long-term care is:

 

Prepaid health plans that provide comprehensive health care to members are called:

 

A provision under which the insured pays a flat dollar amount each time a covered medical service is received is called:

 

A preferred provider organization (PPO) is a group of doctors and hospitals that agree to provide health care to members at       fees that are slightly higher than those for health maintenance organizations.

 

The benefit limits provision defines the maximum benefits possible in terms of either a(n)       amount or a number of       in the hospital.

 

Self-insurance is an arrangement in which a company collects premiums from employees and _____________.

 

True or false: Most private insurance companies do not provide group policies.

 

______ allow you to contribute money to a tax-free account that can be used for out-of-pocket health care expenses if you buy high-deductible health insurance policies to cover catastrophic expenses.

 

Most policies pay ______ of expenses above the deductible amount; the policyholder pays the rest.

 

Which insurance supplements Medicare by filling the difference between Medicare payments and medical costs not covered by Medicare?

 

Managed care refers to       health plans that provide comprehensive health care to members.

 

What program was designed to provide medical assistance to low-income individuals and families?

 

A group of doctors and hospitals that agree to provide health care to members at prearranged fees is called:

 

      insurance provides regular cash income lost by employees as a result of an accident or illness.

 

The main risk involved with a ______ health plan is the financial burden if the medical bills are greater than the amount covered by premium income.

 

True or false: Life insurance is one of a few ways to provide income and liquidity at the time of death.

 

Health savings accounts allow you to contribute money to a tax-free account that can be used for out-of-pocket health care expenses if you buy      -deductible health insurance policies to cover catastrophic expenses.

 

Life expectancy in the United States has been:

 

       insurance makes up the difference between Medicare payments and medical costs not covered by providing supplemental insurance that can be purchased.

 

Which household has the highest need for life insurance?

 

       was designed to provide medical assistance to groups who are eligible to receive payments under one of the cash assistance programs.

 

One question to ask when considering life insurance is "how much money you would like to        to your dependents"?

 

Which insurance provides payments to replace income when an insured person is unable to work for a long period of time?

 

The easy method is based on the assumption that it will take       years to adjust to financial consequences of death.

 

Which type of insurance provides liquidity at the time of death?

 

For most consumers, term life insurance is considered to be the:

 

Life expectancy in the United States has been steadily      .

 

A plan where the policyholder pays the same premium for as long as they live is called a(n):

 

Households with       children have the greatest need for life insurance.

 

Cash-value policies provide a death benefit and a(n)       account.

 

When considering life insurance, what questions should you ask?

 

A group insurance plan insures a(n)       number of people under the terms of a single policy without requiring       examinations.

 

Which method uses an equation of 70% of your salary for seven years?

 

Jim has what some would call "the best life insurance policy on the market," but it does not meet his objectives. Therefore, to Jim this policy is:

 

For fairly young people,       life insurance is less expensive than       life insurance. These are one word answers.

 

A beneficiary is a person designated to receive something, such as life insurance proceeds.

 

A term life insurance policy is one in which policyholders pay the same premium each year as long as they live.

 

Which of the following are factors that affect the price of an insurance policy?

 

The amount received after giving up a whole life type of insurance policy is called the:

 

Group insurance plans insure a large number of people under the terms of:

 

In order for your beneficiary to redeem the policy, they will need to have your ______ certificate and your insurance policy.

 

A life insurance policy is valuable only if it meets your      .

 

Which option pays beneficiaries in equal, periodic installments for a specified number of years after the death of the insured?

 

A person designated to receive something, such as life insurance proceeds, from the insured is called a(n):

 

One factor that affects the price of a life insurance policy is the rate of death among policyholders, also called       rate.

 

True or false: A cash value life insurance policy provides both insurance and a savings account.

 

If you are the beneficiary of a policy, it is most important to know:

 

The limited installment payment option allows for the payment of life insurance to be paid in ______ periodic installments for a specified number of years after your death.

 

True or false: Home owner's insurance covers damages to your home due to many perils, such as fire and windstorm, and it also covers personal injuries received by persons on your property.

 

Automobile insurance covers _____ and personal damage (bodily injury) caused by the policyholder's car.

 

Life insurance replaces _____ that would be lost if the policyholder died.

 

A principle in which thousands of policy-holders pay a small sum of money into a central pool, which is then large enough to meet the expenses of the small number of people who suffer a loss is called:

 

An insurance company shares the _____and assumes financial responsibility for losses from an insured risk. This is found in the discussion of what is insurance toward the beginning of the chapter.

 

Home insurance covers the policyholder's place of residence and its associated ________, such as damage to personal property and injuries to others.

 

An insurance policy requires the payment of an annual _____ as part of a contract to cover the risk. This is found in the discussion of what is insurance.

 

True or false: Automobile insurance covers property and personal damage caused by the policyholder's car.

 

_____ is the chance of loss or injury.

 

True or false: Life insurance replaces income lost when the policyholder dies.

 

When you buy a car you have also bought a(n) _____ whenever you drive it.

 

The principle of pooling risks is based on a large number of people paying relatively small sums of money called _____ to meet the expenses of a small number of people who suffer losses.

 

An insurance company is a risk _____ business that agrees to pay for losses that may happen to someone it insures. This is found in the discussion of what is insurance at the beginning of the chapter.

 

An insurance policy contract requires that the policyholder pay an annual amount, usually called a(n) _____, to cover the risk. This is the cost of the policy.

 

Uncertainty or lack of predictability is called:

 

Fire, windstorms, robbery, accidents, and premature death are all _____ that can cause a loss. This is found in the discussion of types of risks.

 

An insurance company shares the _____ and assumes financial responsibility for losses from an insured risk. This is found in the discussion of what is insurance toward the beginning of the chapter.

 

Personal risks are uncertainties surrounding loss of _____ or life due to premature death, illness, disability, old age, or unemployment.

 

Liability risks are possible losses due to _____ resulting in bodily injury or property damage to others.

 

Personal risk, property risk, and liability risk are called _____ risk since there would be a chance of loss only if the specified events occurred.

 

When a risk includes a chance of either loss or gain, it is called:

 

Personal risks are uncertainties surrounding loss of income or life due to:

 

Understanding and managing risks can

 

Liability is a result of ________.

 

When there is only a chance for loss if a specified event occurs, a risk is called:

 

The four risk management methods (in the same order as presented in the text) include risk _____, risk _____, risk _____ and risk _____.

 

_____ risk, such as the risk of starting a business or gambling with your money, carries a chance of either loss or gain.

 

The connection between managing risks and maximizing your success can be best describe by which of the following statements?

 

Which of the following are risk assumption actions?

 

Which of the following are general risk management techniques?

 

The financial impact of disability includes which of the following?

 

The financial impact of illness includes:

 

Deciding not to buy collision insurance on your car is risk _____.

 

For a couple, the financial impact of death includes loss of one _____, loss of services, and final burial _____.

 

According to the text, the financial impact of retirement includes decreased

 

Which of the following strategies reduce the financial impact of property loss?

 

Which of these strategies help reduce the financial impact of a disability?

 

Which of the following strategies can be used to mitigate the financial impact of personal liability?

 

The strategies for reducing the financial impact of illness include:

 

Strategies designed to reduce the financial impact of death include _____ planning, _____ insurance, and Social Security survivor benefits.

 

Which of the following strategies can reduce the financial impact of retirement?

 

The financial impact of property loss includes:

 

Which of the following are financial impacts of personal liability?

 

A basic risk management plan sets goals to reduce additional _____ due to the injury, illness, or death of a family member.

 

The financial impact of death includes:

 

Asking questions such as which risks you can afford to take without having to back away from your goals is part of which step in the risk management planning process?

 

The best plans are flexible enough to handle changing _____ situations.

 

Insurance plans should be evaluated every ____.

 

True or false: A basic risk management plan sets goals to reduce the potential loss of income due to premature death, illness, accident, or unemployment.

 

What are resources that may be available to you to mitigate the risks that you face?

 

True or false: The best risk management plans are flexible enough to handle life's changing situations.

 

Your personal insurance plans should change with your

 

A basic risk management plan sets goals to reduce potential loss of one's _____, savings, and property due to personal liability

 

Identify the reasons for the risk of loss of use faced by property owners?

 

Which of the following are negligent actions?

 

One type of risk to personal property is physical damage. The second type of risk is _____.

 

Strict liability is when you are held responsible for your actions while vicarious liability is when you are held responsible for the actions of _____ person. This is a one word answer.

 

_____ is failure to take reasonable or ordinary care in a situation.

 

True or false: Vicarious liability is when you are held responsible for your actions while strict liability is when you are held responsible for the actions of others.

 

Which of the following are possible limits to the coverage for additional living expenses in a home owner's insurance policy?

 

If your home is insured for $100,000, and your homeowners policy covers up to 75% for household belongings, how much coverage do you have for household belongings?

 

Negligence is failure to take reasonable or ordinary _____ in a situation.

 

You inherited a $25,000 ring from your grandmother. You should cover it with a(n)

 

Additional living expense coverage pays fr the cost of _____________________.

 

Which of the following are typical of the limits of coverage for personal belongings in a home owner's insurance policy?

 

An umbrella policy supplements your basic _____ liability coverage and provides protection for injury claims, such as libel, slander, defamation of character, and invasion of property.

 

A personal property _____ for a home owner's insurance policy requires a detailed description of the items covered and a periodic household _____ to verify the current value.

 

Losses from floods and earthquakes are usually ________ by homeowner's insurance.

 

A(n) _____ is an addition to coverage for a home owner's policy, such as earthquake insurance.

 

What type of policy supplements your basic personal liability coverage and provides protection for injury claims?

 

Sally is living in a dorm and her computer is stolen. The loss is probably covered by

 

Losses from floods are not covered under home owner's insurance, but by:

 

An example of an endorsement on a homeowner's policy is _____ coverage.

 

Tenants Form HO-4 covers personal belongs from the perils of which of the following?

 

The personal belongings of students in college housing are usually covered by the home insurance policies of their _____

 

The coverage of Comprehensive Form HO-5 allows for the replacement costs for the contents of your home and guaranteed replacement cost coverage on _____.

 

Coverage included from home owner's insurance includes all of the following except:

 

The coverage of tenants form HO-4 covers damages to personal property from all of the following perils except:

 

The cost of mobile home insurance is most heavily affected by _____ and by the method used to attach the housing unit to the _____

 

When purchasing insurance you can get the best value by selecting the appropriate coverage amount and

 

True or false: The coverage of Comprehensive Form HO-5 allows for the replacement costs for the contents of your home.

 

Personal property that is excluded from homeowner's insurance includes:

 

Mobile home insurance coverage is very ______.

 

When purchasing insurance you can get the best value by selecting the appropriate _____ amount and being aware of _____ that affect insurance costs.

 

What fraction of homes in the U.S. are not insured or under-insured?

 

Most home owner's insurance policies have a built-in _____ clause that increases coverage as property values increase.

 

The cost of mobile home insurance is most heavily affected by _____ and by the method used to attach the housing unit to the _____.

 

As many as two-thirds of homes in the United States are not insured or are _______.

 

As construction costs rise, you should _____ the amount of insurance coverage.

 

In the past, most home owner's policies contained a provision requiring that the building be insured for at least ______ of the replacement value

 

Under the actual cash value (ACV) method, the payment you receive is based on:

 

The method of settling claims that pays you the full cost of repairing or replacing the item is called the

 

The main influences on the amount of _____ paid for home and property insurance include location, type of structure, and policy type.

 

A home located in an area where there is a history of high claims will have _____ premiums.

 

If you have a mortgage on your home, the bank will require property insurance in an amount that covers its financial _____. This is found in the discussion of home insurance cost factors.

 

The method of claim settlement that pays you based on the current replacement cost of an item less depreciation is called the _____.

 

With the replacement value method of insurance coverage, you receive:

 

The type of structure and the type of _____ materials used influence the cost of insurance coverage.

 

The main influences on the premium paid for home and property insurance include:

 

If more claims have been filed in an area, home insurance rates for people living there will be _______.

 

Some companies offer home insurance _____ to policyholders who are nonsmokers or who are "claim free" for a certain number of years.

 

A brick house would cost more to insure than a similar home made of wood. However, earthquake coverage is less expensive for a brick home than a wood dwelling.

 

The main influences on the amount of _____ paid for home and property insurance include location, type of structure, and policy type

 

Several incentives exist to reduce premium costs on home owner's policies including:

 

Beyond the standard bodily injury and property damage coverage, other possible automobile coverage includes:

 

Suppose Kenny is involved in an accident that was not his fault and the other driver has 50/100/25 coverage limits. Kenny's injuries amount to $20,000. How much will the other driver's policy cover for Kenny's claim?

 

True or false: Medical payments coverage covers the costs of health care for people who were injured in the other automobile involved in an accident with your car.

 

The two main categories of automobile coverage are:

 

Under-insured motorist's coverage provides financial protection when another driver has insurance, but _____ coverage than needed to cover the damages.

 

Jim was involved in an accident that was caused by the other driver and was reimbursed for his medical expenses by his own insurance company. Jim likely lives in a state with a(n) _____ system.

 

Which of the following accurately describes the split limits of 100/300 with bodily injury liability for automobile insurance?

 

Property damage liability protects you against financial loss when you damage:

 

Medical payments coverage covers _____ in your car including friends, carpool members, and others who ride in your vehicle who may be injured in an accident.

 

What kind of insurance pays for damage to an automobile in case of an accident regardless of fault?

 

Kenny is involved in an accident that was not his fault. His property damage amounted to $20,000, but the other driver's insurance only covered $15,000. Kenny's policy pays the rest because he has:

 

subrogation means that the insurance company has a right to recover the amount it pays for the loss from ___________.

 

In a ______ system, drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

 

Property covered under property damage liability insurance includes:

 

Collision insurance pays for the damage to an automobile as a result of an accident regardless of:

 

The concept of _____ means that your insurance company may try to recover the costs of your repairs through the other party's automobile insurance company.

 

The risk of physical damage to your car such as fire, theft, falling objects, and hitting an animal are covered by _____ physical damage.

 

True or false: Comprehensive physical damage insurance for your car covers damage to your vehicle if you are at fault in an accident.

 

Expensive replacement parts and _____ repairs due to body style contribute to higher automobile premium rates.

 

Fewer accidents and less vandalism occur in _____ areas than in urban cities.

 

Which of the following are factors in setting a driver classification?

 

In general, _____ and those over ____ pay higher premiums.

 

An assigned risk pool consists of people who are unable to obtain ______ insurance.

 

Expensive cars usually carry ________ premiums.

 

One question you should ask before filing an auto insurance claim is "How much is your _____?"

 

Your ________ is the place of residence used to determine your automobile insurance premiums.

 

Your insurance _____ _____ is based on your gender, age, and driving record.

 

In general, young drivers (under _____) and those over _____, have more frequent and severe accidents.

 

A(n) _______ risk pool consists of people who are unable to obtain automobile insurance.

 

What questions should you ask when deciding to file an auto insurance claim?

 

Fewer accidents and less vandalism occur in areas than in _____ urban cities.

 

Employers typically provide health insurance called _____ health insurance.

 

Health insurance coverage is available from:

 

The Patient Protection and Affordable Health Care Act of 2010 encourages consumers to invest in prevention and _____.

 

In the United States, we spend ____ as much on health care as the average for the 24 industrialized countries in Europe and North America.

 

Group health insurance provided by employers is often part of an employee's:

 

True or false: Health insurance coverage is only available from private insurance companies.

 

Administrative costs represent what percentage of health care costs in the United States?

 

The Patient Protection and Affordable Health Care Act of 2010 was passed with the belief that comprehensive health care should:

 

Which country has the highest per capita medical expenditures?

 

Administrative costs in the United States are much higher than those in other nations due to activities such as:

 

_____ costs represent 11% of health care costs in the United States.

 

Because third parties, private health insurers, and the government pay such a large part of the nations health insurance bill, there is a lack of ______ to make the most economical use of the health care system.

 

Administration costs for health care in the United States are less than in nations such as Canada and Mexico.

 

In order to contain health care costs, physicians are encouraging consumers to pay with _____ for routine medical care and lab services.

 

Which of the following is not a reason for the high and rising cost of health care?

 

Which two groups pay the majority of the nation's health care bill, leading to a lack of incentives to cut down on costs?

 

Which of the following activities have been undertaken by health care professionals and consumers to keep the overall cost of health care down?

 

Health insurance includes:

 

To establish _____ and benefits, insurance company actuaries rely on statistics that tell them how many people in a certain population group will become ill and how much their illnesses will cost.

 

Similar to car and life insurance, the individual pays a specified _____ for health insurance in exchange for some degree of financial assurance.

 

In most group health insurance plans, the employees pay part of the premium and the _____ pays the remainder.

 

Which of the following are types of health insurance?

 

The Health Insurance Portability and Accountability Act of 1996 provides:

 

What do insurance company actuaries rely on to establish rates and benefits?

 

The _________ is a method of integrating the benefits payable under more than one health insurance plan so the benefits received from all sources are limited to 100% of allowable medical expense.

 

_____ is the process of paying a premium in exchange for financial protection.

 

For nonworking spouses after divorce, coverage under a former spouse's medical plan may be continued up to _____ months if the spouse works for a company with _____ or more employees.

 

In a group health insurance plan arrangement, ______ and ______ are most likely to pay for the cost of health care.

 

The Health Insurance Portability and Accountability Act of 1996 provided federal standards for _____ renewability.This is found in the discussion of what is health insurance.

 

Most group policy contracts have a _______________ provision, which ensures that benefits paid under more than one health insurance plan do not exceed 100 percent of allowable expenses.

 

Medical coverage for a nonworking spouse after divorce tends to be:

 

Group health insurance plans represent about ______ of all health insurance plans.

 

After a divorce, the ______ parent can usually still include their children on their health plan if they live with a nonworking custodial parent.

 

For nonworking spouses after divorce, coverage under a former spouse's medical plan may be continued up to months if the spouse works for a company with or more employees.

 

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 requires employers to offer employees and dependents, who would otherwise lose group health insurance, the option to continue their group health coverage for:

 

In the case of a divorce, the working spouse can often continue to cover the children of the nonworking spouse under their _____ group medical plan.

 

True or false: The Consolidated Omnibus Budget Reconciliation Act of 1986 is applicable and extends medical coverage to all employees of federal government agencies.

 

Which of the following is not true about hospital expense coverage?

 

The federal Consolidated Omnibus Budget Reconciliation Act of 1986 requires many employers to offer group health benefits to:

 

Which type of insurance pays part or all of the surgeon's fees for an operation?

 

Physician expense insurance provides benefits for which of the following?

 

Under COBRA, employees of which of the following types of organizations are covered?

 

Which type of insurance pays part or all of hospital bills for room, board, and other charges?

 

Surgical expense insurance pays part or all of surgeons' fees for a(n) _____

 

Which type of insurance provides benefits for doctors' fees for nonsurgical care, X-rays, and lab tests?

 

The _____ the deductible, the less expensive the policy.

 

The typical out-of-pocket payment for a stop-loss provision ranges from:

 

Which type of health insurance plan pays the large costs of hospital stays and of surgeries-in other words serious injuries or long illnesses?

 

The hospital indemnity policy is a major medical protection.

 

The two factors that greatly affect the cost of health insurance are:

 

Dental expense insurance provides reimbursement for the expense of services and supplies and encourages _____ dental care.

 

Stop-loss is a provision under which an insured pays a certain amount, after which the insurance company pays _____% of the remaining covered expenses.

 

Which type of insurance is complete major medical insurance that has a very low deductible?

 

"Good" vision care insurance should cover which of the following?

 

Which type of policy pays benefits when you are hospitalized that are in cash and you can spend as you choose?

 

Which of the following insurance policies is NOT considered to have a poor value?

 

Which type of insurance provides reimbursement for the expense of services and supplies and encourages preventive care for teeth?

 

Most insurance policies allow you a minimum of _____ days to review your health insurance policy to ensure adequate coverage.

 

A provision in major medical policies, also called an out-of-pocket limit provision, under which an insured pays a certain amount, after which the insurance company pays 100% of the remaining covered expenses, is called a (found in discussion of types of medical coverage):

 

The eligibility provision defines who:

 

Good vision care insurance should cover diagnosing and _____ eye diseases.

 

When you assign benefits, you sign a paper allowing your insurance company to make payments to your _____ or _____.

 

Cancer insurance, trip insurance, death insurance, and dread disease insurance are all considered to have a(n) _____ value.

 

What is the day-in, day-out assistance that you might need if you ever have an illness or disability that lasts a long time and leaves you unable to care for yourself?

 

A policy with _____ limits will pay only a fixed amount for your hospital room no matter what the actual rate is. For example, if your policy has a $500 limit and you are in a $600 room, you will pay $ _____.

 

Most insurance plans allow you a minimum of 10 days to _____ your health insurance policy.

 

Age, marital status, and dependency requirements are usually specified in the ______ provision of an insurance policy.

 

______ cuts down on paperwork and time by allowing your insurance company to pay the hospital before you receive the bill from them.

 

Service benefits are always ________ a coverage stated in dollar amounts.

 

If your health insurance policy has a limit of $1,000 per hospital day, and your hospital charges $900 per day,

 

The exclusions and limitations provision specifies the conditions or circumstances for which the policy:

 

True or false: In a service benefit provision, insurance benefits are expressed in terms of entitlement to receive specified hospital or medical care rather than a fixed dollar amount for each procedure.

 

What provision prevents you from collecting benefits from two or more group policies that would in total exceed the actual charges?

 

With a(n) ______ policy provision, the insurance company cannot cancel unless you fail to pay premiums when due.

 

An _____ policy provides specified benefits regardless of whether the actual expenses are greater or less than the benefits. A _____ policy provides benefits based on the actual expense.

 

The exclusions and limitations provision may deny coverage for preexisting conditions, cosmetic surgery, or routine checkups.

 

Aggregate limits are limits on the _____ amount of coverage.

 

A method of integrating the benefits payable under more than one health insurance plan is called:

 

A policy that limits the total of the coinsurance and deductibles you must pay will limit your financial burden, but also increase your:

 

Under the guaranteed renewable policy provision, the insurance company cannot raise premiums unless it raises premiums for all members in your _____.

 

A policy that covers "reasonable and customary" medical expenses limits _____ to the usual charges of medical providers in an area.

 

Which policy provides benefits based on the actual expense incurred?

 

Which type of limit stipulates expense limits for individual items as opposed to a maximum total limit?

 

Out-of-pocket limit is a provision in an insurance policy that limits the amount one must pay, but this causes the _____ to increase.

 

Blue Cross is an independent, nonprofit membership corporation that provides protection against the cost of _____ care

 

Blue Shield is an independent, nonprofit membership corporation that provides benefits for _____ and medical services performed by physicians.

 

The main purpose of a policy provision stating "reasonable and customary" is to prevent:

 

Aggregate limits are limits on the _____ amount of coverage.

 

What percentage of employed Americans are enrolled in some form of managed care?

 

Name an independent, nonprofit membership corporation that provides protection against the cost of hospital care.

 

A health maintenance organization (HMO) is a health insurance plan that provides a wide range of health care services for a(n) ________ monthly premium.

 

Name an independent, nonprofit membership corporation that provides protection against the cost of surgical and medical services.

 

HMO basic health services include inpatient, outpatient, maternity, mental health, substance abuse rehabilitation, and _____ care.

 

Preventive care for an HMO includes checkups, screening, diagnostic testing, and routine _____.

 

Managed care is offered by which of the following?

 

A health insurance plan that provides a wide range of health care services for a fixed prepaid monthly premium is called a:

 

_____ health services for an HMO include vision and pharmaceutical services.

 

Basic health services for an HMO include inpatient and outpatient services such as (found in the discussion of health maintenance organizations):

 

HMO preventive care services include periodic checkups as well as:

 

With an HMO you must stay within one network of doctors, yet with a(n) ______ you can choose your own doctor.

 

Supplemental health services for an HMO include:

 

Which organization renders medical care from affiliated health care providers?

 

A network of selected contracted participating providers, also called an HMO-PPO hybrid, is a (found in discussion of preferred provider organizations):

 

PPOs offer the services of doctors and hospitals at a discount rate, but are more flexible in the patient's choice of physician than _____.

 

point-of-service plans (POS) are different from health management organizations (HMO) in that they reimburse expenses for out-of-plan providers, but outside the network there are _____ overall costs.

 

An _____ provider organization is one that renders medical care from only affiliated health care providers and will not reimburse for charges from non-affiliated health care providers.

 

Rising hospital care costs, new medical technology, and the increasing number of elderly people have helped make _____ one of the fastest-growing areas of the health care industry.

 

A point-of-service plan is a network of selected contracted participating _____. This is found in the discussion of preferred provider organizations.

 

One difference between point-of-service plans (POS) and preferred provider organizations (PPO) is that point of-service plans:

 

The reasons for the increased need for home health care include:

 

Flexible spending accounts allow you to contribute ______-tax dollars to an account managed by your employer.

 

Health reimbursements accounts (HRAs) are tied to high _____ insurance policies.

 

Point-of-service plans (POS) are different from health management organizations (HMO) in that they reimburse expenses for out-of-plan providers, but outside the network there are _____ overall costs.

 

Which of the following is NOT a way to use a health savings account (HSA)?

 

The money in a flexible spending account must be used for health care and used by the end of the _____.

 

What qualifications must you have to be eligible for Medicare?

 

Which of the following is a plan that is funded solely by your employer and gives you a pool of money to spend on health care?

 

Medicare _____ insurance is financed from a portion of Social Security taxes.

 

One way to use a health savings account is to contribute money through your employer. If there are funds left over at the end of the year, this money will grow _____ free.

 

The majority of people who draw on Medicare are _____ or older.

 

Which part of Medicare helps pay for doctors' services and a variety of other health services and supplies?

 

Unlike Part A and B of Medicare, Part C (Medicare Advantage) is run by _____ health care providers.

 

Part _____ of Medicare covers all services for inpatient hospital care after you pay a single deductible.

 

Which of the following medical expenses are not covered by Medicare?

 

Medicare Part _____ covers many doctors' services and other health services not covered by Part A.

 

Which part of Medicare----which is also run by private health insurance companies----is less expensive and offers extra benefits?

 

Which medical expense is covered by Medicare?

 

Medicaid is administered by each individual _____ but is funded by a combination of state and _____ funds.

 

Key provisions in the Patient Protection and Affordable Care Act of 2010 include:

 

Healthfinder includes links to more than 1,000 websites operated by government and nonprofit organizations.

 

Originally designed for health professionals, this service can be used to look up prescription drugs, diseases, and much more medical information. It also provides a collection of published medical material. What is the name of this service?

 

Which of the following provides a single-access point to consumer medical resources?

 

Medicaid is funded by:

 

The Patient Protection and Affordable Care Act bans insurance companies from ______________ coverage when they get sick.

 

_____ compiles Web sites from nonprofits, federal and local Web sites, and many other sources to present a complete health Web site that ranks 21st among consumers Internet-wide.

 

Disability income insurance protects your most valuable asset. which is your:

 

MEDLINEPlus, the world's most extensive collection of published medical information, was originally designed for health _____ and _____.

 

People often overlook _____ income insurance because they feel young and healthy now.

 

True or false: One great feature of the NIH Health Information page is the comprehensive consumer health information resources.

 

Prior to age 60 disability is:

 

_____ income insurance protects your most valuable asset: your ability to earn money.

 

A poor disability plan pays you when you are _____ to work at any job

 

Many people often overlook disability income insurance because:

 

Match the waiting periods and premiums for disability plans.

 

Benefits for disability plans have a wide variety of payout ranges. The most desirable benefits are those that are paid for:

 

Disability can cause even greater _____ problems than _____.

 

A good disability plan would pay you when you:

 

Disability benefits should equal 70%-80% of:

 

With disability plans, the longer the waiting period, the _____ the premiums.

 

Some disability income policies will pay only for accidents, but you want to be insured for ______, too.

 

You should seek a disability income policy that pays benefits for ____.

 

A type of coverage that protects you against your insurance company dropping you if your health becomes poor is called:

 

A poor disability plan pays you when you are _____ to work at any job.

 

Disability income insurance may also be provided by your employer, Social Security, or

 

Disability benefits should equal:

 

True or false: You should immediately replace a health or disability policy when you think it is out of date.

 

With disability insurance, there is a need for both _____ and _____ coverage.

 

The two questions involving time periods with disability income insurance are the benefits period and the _____ period.

 

Which of the following is not true about disability insurance?

 

What are the sources of disability income coverage?

 

Most insurers limit disability benefits from all sources to ______ of your take-home pay.

 

Which of the following are not good ideas when applying and maintaining health and disability insurance?

 

Which of the following are common questions for evaluating a disability income policy?

 

True or false: Insurers limit benefits from all sources to 70%-80% of your take-home pay because you no longer incur work-related expenses and your taxes are much lower, if not zero.

 

Spouses that were inadequately insured included _____ % of widows and _____ % of widowers.

 

Life insurance is important, but can also be very

 

Life insurance is when a person joins a risk-sharing group known as an insurance company and purchases a contract also called an insurance

 

One of the many common uses of life insurance proceeds is to pay off a home _____ and other debts at the time of death.

 

Most American families face a substantial loss when one spouse dies _______.

 

Life insurance is:

 

The Standard Ordinary Mortality Table of 2001 differentiates based on _____ and _____

 

In insurance, an example of a risk sharing group is a(n):

 

Life insurance proceeds can be used wisely to:

 

When looking at life expectancy tables, the life expectancy of a male at age 30 is 47.8. 47.8 is the _____ number of additional, or remaining, years a male may expect to live.

 

Which of the following factors should be considered before buying life insurance?

 

Records covering many years and including millions of lives have been combined into tables called the:

 

People that live alone or with parents typically do not need _____ insurance.

 

Your stage in the life cycle and type of household help determine your _____ for life insurance.

 

Life expectancy tables provide:

 

When considering life insurance, you should consider present and _____ sources of income.

 

If current income is $50,000, then what is the amount of life insurance coverage needed using the easy method?

 

People that live alone or with their parents mostly likely:

 

A "typical" household takes into consideration the following:

 

When determining your need for life insurance, you should consider your:

 

The _____ insurance method is for families with no children.

 

Total debts equal $80,000, and funeral costs equal $5,000. Using the DINK method, what is the total insurance need?

 

If current income is $20,000, then what is the amount of life insurance coverage needed using the easy method?

 

Understanding that a "typical" household is defined many ways, a family with more kids may need _____ coverage.

 

The DINK method may not be the best method for individuals who have:

 

The DINK method is designed for families with spouses who have (found in discussion of DINK method):

 

Debts equal $100,000, and funeral costs equal $4,500. Using the DINK method, what is the total insurance need?

 

Costs not associated with replacing the services of a nonworking spouse include:

 

If a spouse has an unstable job or poor health, then the _____ method may not be the best option. (Answer with the acronym.)

 

The ______ ______ method takes into consideration the cost of replacing services, such as child care, housekeeping, and cooking.

 

A mother of two children ages 4 and 10 wants to purchase life insurance. What is the total need under the nonworking spouse method from the following situation?

 

If anyone suffers from poor health or there are more than two children under the age of 13, the nonworking spouse method should be adjusted:

 

For the nonworking spouse method, extra costs NOT considered include the surviving spouse's time away from their _____ to care for the family.

 

If your family is not "typical", then the family need method may be the best alternative. It considers your social security and liquid _____ when determining the amount of coverage needed.

 

A person should reevaluate their insurance needs every _____ year(s).

 

The nonworking spouse method takes into consideration the cost of replacing the services of:

 

Stock life insurance companies are owned by:

 

To calculate the total need under the nonworking spouse method, use the formula of: ( _____ minus the age of the youngest child age)*10,000.

 

True or false: If there are teenage children, the DINK method can typically be reduced.

 

Mutual life insurance companies generally sell _____ or par policies.

 

Unlike other methods of determining life insurance coverage, which method takes into consideration your social security and liquid assets?

 

Life insurance that does not provide policy dividends is also called a nonpar, or ______ policy.

 

Whenever your situation _____ substantially, you should update your insurance coverage.

 

The two types of insurance companies are stock life insurance companies and ______ life insurance companies.

 

Life insurance that provides policy dividends is called:

 

A nonparticipating policy will have:

 

Stock life insurance companies generally sell:

 

Nonparticipating policies do not provide policy _____.

 

What characteristics should you consider in an insurance company?

 

The birth of another child can:

 

Term life insurance is:

 

Participating policies refund part of the policy premium called a policy

 

A(n) _____ life insurance policy will have guaranteed premiums.

 

When choosing an insurance company, you need to look for one that is financially stable, has good service, and is _____.

 

Life insurance protection for a specified period of time is called:

 

If you wish to continue your existing term life insurance coverage, the easiest method is if your policy:

 

True or false: Multi-year level term insurance is also called straight term insurance.

 

A conversion option allows you to change a(n) _____ policy to a(n) _____ life policy.

 

Decreasing term insurance policy pays the beneficiary _____ as time passes.

 

With a _____ option, you can continue your existing term coverage for the next period without a medical reexamination.

 

John signed a 15-year return-of-premium policy. He pays $14,345 into the policy over the next 15 years. He is still alive 15 years after signing the contract. How much will John receive from the insurance company?

 

Multi-year level term insurance is advantageous because it allows you to pay:

 

Return-of-premium policies refund every premium if you outlive the time period provided. However, these policies cost ______ than traditional term life.

 

When considering a return-of-premium policy you must ask two questions: "Are you likely to cancel before the policy is over?" and "Would you earn more buying a less-expensive term policy and _____ the savings?"

 

Which option allows you to change your term policy into a whole life policy without an additional medical examination?

 

A policy that pays the beneficiary less as time passes is:

 

Return-of-premium policies typically cost 30 to 50 percent ______ than traditional term life.

 

Cash value is the amount the policy holder _____ after giving up a life insurance policy

 

Return-of-_____ policies refund all money if you outlive the time period in the contract.

 

Cash-value policies are good for people who:

 

Before buying a return-of-premium policy, you should ask yourself if you can earn more buying a cheaper term policy and _______.

 

The primary factor for determining premiums for whole life insurance policies is the:

 

A special form of the limited payment plan is the single-premium policy in which the policyholder pays only _____ very large premium payment.

 

For _____ insurance rates, a person must have a good personal and family history, good blood profile, good blood pressure, good driving record and a good weight for their height.

 

Cash-value policies are good for people who must be forced to save and for those who plan to keep the policy for the _____ term.

 

The cash values of a variable life insurance policies fluctuate based on the yields earned by a separate fund which which will typically include categories such as a(n) _____ fund, a money market fund, or a(n) _____ fund.

 

With a(n) ______ life insurance policy, you can change your policy as your needs change.

 

Premiums for whole life insurance policies are primarily determined based upon the _____ of the insured when it is purchased.

 

A whole life policy that combines term insurance and investment elements is called:

 

With the limited payment policy, you pay premiums up to a certain age (ex. 60,65) and after that age has been reached you:

 

The guidelines required for preferred insurance rates include:

 

The cash values of a variable life insurance policies:

 

A universal life is essentially a term policy with a _____ value.

 

John has an adjustable life insurance policy and he decides that he no longer needs the large amount of coverage he has. Therefore, as John's coverage decreases, his premiums:

 

Universal life is a whole life policy that combines _____ life insurance and _____ elements.

 

_____ life allows you to change your premium without changing your coverage.

 

With the _____ payment policy, you pay premiums up to a certain age until you are paid up, and then you are insured for life.

 

The advantages of a universal life policy include:

 

The cost of group health insurance is sometimes split between:

 

True or false: An endowment life insurance policy will pay a specified lump sum only to beneficiaries at the time of death.

 

Universal life allows you to access your cash value by a policy loan or _______, while whole life allows only for policy _____.

 

_____ life insurance is used to repay certain debts, such as auto loans, should the borrower die before doing so.

 

Some experts have said that _____ life insurance policies are not the best buy for the protection that they offer and that they are the nation's biggest ripoff.

 

True or false: In most cases, the cost of group health insurance is entirely paid by the employee.

 

With ______ life insurance policies, agents collect weekly, bimonthly, or monthly premiums at the insured's home.

 

Which policy provides coverage from the beginning of the contract to the maturity date and then pays a specified lump sum regardless of if the person is still living or has died?

 

Which form of life insurance is used to repay a personal debt should the borrower die before doing so?

 

With industrial life insurance, also known as _____ insurance, agents collect weekly, bi-monthly, or monthly premiums at the insured's _____. These are one word answers.

 

A ____ policy can be reinstated if you again qualify as an acceptable risk and you pay overdue premiums with interest.

 

True/False: If you have not paid your premium by the end of the grace period, your policy lapses.

 

Assuming cash value is sufficient in your whole life policy, the automatic premium loan option allows the insurance company to take money out of the policy's _____ value if you miss paying a premium. This allows your policy not to lapse in the case of a missed _____.

 

The guaranteed insurability option allows you to buy specified amounts of _____ life insurance at stated intervals without requiring proof of insurability. This is found in the discussion of the guaranteed insurability option.

 

Limited to one or two years, policy _____ is possible if you have missed payments and your policy has not been redeemed for cash.

 

The grace period typically allows a lapse of ______ to pay the premium payment.

 

The important feature in a whole life insurance policy that protects your accrued benefits if you decide to drop the policy is called the _____ _____.

 

The provision that pays your premium out of your policy's cash value if it is sufficient is called a(n)

 

The provision that gives you 28 to 31 days to pay your premium is called a(n)

 

A provision stating that the insurer cannot dispute the validity of a policy after a specific period is called a(n):

 

A provision that prevents the forfeiture of accrued benefits if you choose to drop the policy is called a(n):

 

There are several reasons for the incontestable clause; one is to protect the _____ from financial loss if the insurance company refuses to meet the terms of the policy.

 

The name of a provision stating that if the insured dies by suicide during the first two years that the policy is in force, then the death benefit will equal the amount of premium paid is a(an):

 

An incontestability clause states that the insurer cannot dispute the _____ of a policy after a specific _____ of time. These are one word answers.

 

Jane has named her husband Bob as the beneficiary in her life insurance policy. She also indicated that their daughter Jennifer should receive the funds if Bob is already deceased. Jennifer is known as a _____ _____.

 

The _____________ provision sets forth a simple procedure to resolve what could otherwise be a complicated legal matter.

 

The reason for the incontestibility clause is:

 

If suicide occurs during the first _____ years the policy is in force, only the _____ paid are paid to the beneficiary.

 

A policy loan provision permits you to borrow any amount up to __________ of the policy.

 

Betty has named Jill as her primary beneficiary, but two days before Betty's death, Jill passes away. Luckily for Betty she has named additional people as:

 

In a second-to-die policy the death benefit is paid when the ____ spouse dies.

 

The misstatement of age provision states that if you misrepresent your _____, the company will pay the benefits your premiums would have bought if your age had been correctly stated.

 

A document attached to a policy that _____ its coverage is called a rider.

 

Under the waiver of premium disability benefit, a person that becomes completely disabled has her or his premiums paid for by

 

Double indemnity is a benefit under which the company pays _____ the face value of a policy if the insured's death results from an accident.

 

After a certain number of years stated in the policy, the policy _____ provision permits you to borrow any amount of money up to the cash value of the policy.

 

In a second-to-die option, the policy pays out after the death of the second spouse usually to cover ______ taxes.

 

Which of the following refers to the amount of impact inflation has on a fixed amount of money?

 

A document attached to a policy that modifies its coverage is called a(n):

 

Accelerated benefits are life insurance policy proceeds paid to a terminally ill policyholder _____ the time of death.

 

under the waiver of premium disability benefit, the company waives an premiums due after the onset of a total and permanent disability, as long as it occurs before you reach a certain ___.

 

Accelerated benefits can now be used to supplement _____ -term care needs.

 

A benefit under which the company pays twice the face value of the policy if the insured's death results from an accident is called a:

 

When looking to buy insurance, you should purchase from a company that is:

 

Insurance protection is available from the following sources:

 

Cost-of-living protection is a special rider that is designed to help prevent _____ from eroding the purchasing power of the protection your policy provides.

 

Regardless of whom you purchase insurance from, make sure that the company and employees are licensed in your _____.

 

Life insurance policy proceeds paid to a terminally ill policyholder before death are called

 

True or false: Providers of coverage are tightening their guidelines for who gets coverage.

 

Some life insurance companies sell policies with a rider that will pay out part of the death benefit for

 

Many times the company that is the most financially secure is the one with:

 

One of the main factors when determining which companies to buy policies from is whether or not the company is _____ strong.

 

Which of the following is NOT a source of ratings for insurance companies?

 

insurance protection is available from several _____ and _____ sources.

 

An insurance company, in order to get your business needs, must:

 

Which of the insurance ratings system uses grades that look most similar to school grades (i.e., A+, A, A-, B+ etc.)?

 

Insurance companies look at which of the following as guidelines for preferred rates:

 

Match a company's financial strength with its premiums.

 

As a rule, you should deal with insurance agencies with a _____or _____ rating.

 

In addition to handling the technical side of things, the insurance agent helps people find the proper kind of protection within their _______.

 

Superior and excellent insurance ratings according to A. M. Best all have grades with at least a(n):

 

Insurance agents may be compensated with a salary or paid on _____.

 

Which of the following is NOT a common professional designation for insurance agents?

 

Who helps people select the proper kind of insurance protection within their financial boundaries?

 

The prices of life insurance policies ______________ among life insurance companies.

 

_____ _____ services offer options for narrowing suitable insurance policies for individuals.

 

Which type of insurance agent represents multiple carriers and can offer more choices?

 

A life insurance agent who has passed a series of college-level examinations on insurance and related subjects is called a(n):

 

When asking for a quote you should ask what the _____ rate charged to most policyholders is, rather than asking what the _____ rate is that few people qualify for.

 

Price quote services review your age, health status, and ______ with computer data banks to deliver to you a selection of policies suitable to the needs that you specify.

 

The main issue to understand when factoring the net cost for insurance is the:

 

True or false: A chartered life underwriter is an insurance agent who has passed a series of college-level examinations on insurance and related subjects.

 

Premium payments, dividends, cash-value buildups, and present value analysis are all factors used to determine the _____-adjusted index.



True/False: In the first part of the insurance application, you state your name, sex, policy desired, and other information, and in the second part you give your medical history.

 

The three sources of information used by your insurance company to determine insurability are your _____, the results of the medical examination, and the _____ report.

 

Joseph wants to determine the net cost of insurance. He paid $4,200 in premiums over 20 years. He realized had he invested his money elsewhere he could have made $6,180 over 20 years. After subtracting out the cash value of $4,600, what is the total cost of insurance to Joseph?

 

The most widely used option of insurance proceeds payment is the:

 

Interest-adjusted index is the method of evaluating the cost of life insurance by taking into account the _____ value of money.

 

How many parts are there in a typical insurance application?

 

If a person leaves their benefits to the insurance company, the company acts as a _____ of the money and pays the interest to the beneficiary.

 

The company determines your insurability by means of the information, the results of the medical examination, and the _______.

 

For a lump-sum payment, the insurance company pays the face amount of the policy in ______ installment to the beneficiary or to the estate of the insured.

 

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

 

If the policyholder decides on the "left with the company" option for a life insurance policy, the beneficiary will receive:

 

Match immediate annuity and deferred annuity.

 

The primary reason to buy an annuity is to give you:

 

Match fixed and variable annuities.

 

Annuities are a "good" investment for people who are:

 

Payment to begin at a(n) _____ date is referred to as a deferred annuity.

 

An annuity is a contract that provides regular _____ for as long as a person lives.

 

Underlying fees for a life insurance policy may include:

 

Under the _____ annuity option, payments vary monthly based on changes in investment returns.

 

Annuities are not advised for individuals with _____ health.

 

True/False: Before you switch from a whole life policy, you should make sure that you are still insurable.

 

Under what option are insurance payments sent to beneficiaries for their entire life?

 

When buying life insurance policies, you should:

 

The mortality and expense risk charges pay for the:

 

When looking to switch insurance companies, it is important to:

 

Which of the following is important when buying life insurance?

 

One disadvantage of variable annuities is the ______ charge the insurance company will assess if you withdraw money from the annuity within a certain time.

 

For life insurance policies, there can be several other:

 

The administrative fee is charged to cover _____ keeping.

 

True or false: It is important that you ask your insurance agent to explain all charges that apply.