FIN exam 2

Most insurers limit disability benefits from all sources of insurance to no more than ____________ percent of your take-home pay.

70-80

Which of the following is considered personal property for home insurance coverage?

furniture

Which of the following is a list of personal belongings with purchase dates and cost information?

household inventory

The first phase of the consumer buying process involves:

identifying the problem.

The 100 in 100/300/50 refers to:

the limit for bodily injury claims that can be paid to one person.

In the case of divorce, federal law provides that coverage under a former spouse's medical plan can be continued for _____ months if the former spouse works for a company with 20 or more employees.

36

Todd Foley is applying for a $100,000 mortgage. He can select either a $595 monthly payment with no points or a $515 payment with two points. How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

25

Which of the following would be an advantage of leasing a vehicle?

Lease payments are likely to be lower than loan payments

Which of the following is not an advantage of renting?

More long-term financial benefits than home ownership

Which one of the following is true regarding group health insurance?

Provides coverage for you and your immediate family

The assessed value of your home is the:

Value used to calculate property taxes

Joan Wilder receives a phone call from a salesperson who tries to sell her an insurance policy by scaring her about her high risk of death from this disease. She knows that this type of insurance policy is notoriously a poor value, so she politely declines. What type of insurance policy did this salesperson likely try to sell her?

cancer

_________ coverage protects your automobile from risks such as glass breakage, falling objects, vandalism, or damage caused by hitting an animal.

comprehensive physical damage

Comprehensive physical damage coverage would cover financial losses due to:

damage to your car caused by wind or hail.

The purpose of the invoice price is to inform customers of the:

dealers cost

Sophie Bennett must pay $500 for doctor's visits each year before her insurance company will make any payments for doctor's visits. What is this requirement called?

deductible

According to The Center for Medicare and Medicaid Services, health insurance includes both medical expense insurance and:

disability income insruance

An escrow account is designed to reduce the cost of a mortgage.

false

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

females alive at 30 years of age are expected to live an additional 52 years on average.

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process. This is called a:

float

Which of the following is not a social factor that would influence a consumer buyer's decision?

marital status

Consumer information necessary for wise purchasing decisions, such as websites or radio, is commonly provided by:

media sources

Which one of the following is a source of government health insurance?

medicare

Which type of home has a tendency to quickly depreciate in value?

mobile home

The expected value of a vehicle at the end of a lease is called the:

residual value

Joan Stone owns a home in Edmond, Oklahoma. She is worried her property might be damaged due to some unforeseen event. This worry about the uncertainty as to a loss is an example of a:

risk

Which of the following is least likely to assist you in timing purchases to help you obtain bargains?

time zones

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

true

Medicare is financed both federal and on the state level

true

Surgical expense insurance pays part or the full amount of the surgeon's fees for an operation.

true

The coverage of term insurance ends at the conclusion of the term, but you can continue it if you have a renewability option.

true

if you have convertible term insurance, you can exchange it for a whole life policy without a medical examination and at a higher premium.

true

What type of personal liability coverage is also called a personal catastrophe policy?

umbrella policy

Henry Edwards was injured in an accident caused by another driver who did not have insurance. Henry's medical expenses would be covered by:

uninsured motorists protection

Russell Lowe has a life insurance policy that allows him to change his premium without changing his coverage. He can also access his cash value with a policy loan or a withdrawal. What type of insurance does Russell likely have?

universal life