Finance Exam 2
death benefit of-- life insurance policy may go down due to poor investment returns
c & d ( universal & variable)
if a term life insurance is convertible the policy can be
converted to a comparable whole life policy
what factor affects insurance premiums the most
credit score
an elimination period in disability income insurance is most closely analogous to which of the following cost sharing provisions in health insurance
deductible
medicare is a government sponsored health care plan composed of part A and part B. Part B covers
doctor's bills
in determining available resources to offset economic needs, you would generally not consider
earning potential of financially independent children
which type of settlement option pays for over a predetermined time frame
fixed period
one drawback of long term care insurance is its
high annual premiums
medicare is a government sponsored health care plan composed of Part A and Part B. Part A covers
hospital expenses
the best place to buy automobile insurance is
insurance agent
insurance designed to help with nursing home or in home care
long-term care
a characteristic of dental insurance is
low maximum limits
SMI provides health care protection beyond basic hospital coverage for
medicare recipients who pay for SMI on a voluntary basis
homeowners insurance premiums are determined by
none of these
The loss of ted's personal property and suitcases would be covered by
personal property off premises (homeowners coverage)
disability income policies usually have, that is a time delay from the date of insurance policy until benefit privileges are activated
probationary periods
what risk management technique is the purchaser of insurance a common form of
risk transfer
premium discounts may result from
safe driving record and good academic grades
all of the following except a --- are highly recommended for a long term disability income policy
short waiting period
the least expensive form og whole life insurance protection is a
straight life insurance
the right of--- gives the insurer the right to recover its costs from the at fault party after the company has paid a claim to its insured
subrogation
disability income insurance provides benefits that are designed to
substitute for lost income
if your employment is terminated, cobra provides for
temporary continuation of group insurance benefits; you pay premiums
narrative summary of life insurance policy should contain all but
temporary coverage clause
a homeowners policy does not provide protection for the personal property of
tenants
the insurance portion of a universal life policy is most analogous to
term insurance
which of the following forms of life insurance requires the lowest premium per dollar of initial death benefits
term life
underwriting function is designed to be sure that premiums are based on
the chance of loss
hospitalization insurance policy would make payment for
the cost of one's hospital stay
maximum liability policy limits are determined by
the insured's choice
Insurance underwriting is best described as
the process used by insurers to decide who can be insured and to determine applicable rates that will be charged for premiums
from standpoint of the person buying the insurance, the central purpose of the insurance should be
to transfer risks of serious losses
when an insured sells an interest in the life insurance policy ti and investor who becomes the policy's beneficiary
viatical settlement
which of the following companies does not rate the financial strength of life insurance companies
welch's
a liability suit could result when
your dog bites your neighbor
social security is primarily designed to provide health care coverage to persons who are aged, and those who arwe
65 and over, collecting disability under social security
which of the following types of plans pay for some medical cost even when the insured decides to go out of the provider network for services
all of the above (HMO, IPA, PPO, POS)
miscellaneous sources of health care coverage include
all of the above (homeowners insurance, automobile insurance, veterans benefits)
a life insurance contract contains clauses for
all of the above (settlement options, policy reinstatement, beneficiary clause)
auto insurance premiums would be affected by
all of these (auto body type, auto engine size, business usage, commuting over 50 miles daily)
the principle of indemnity would prevent
an insured from collecting more than he lost
in order to collect under uninsured motorist coverage, three specific conditions must be in effect which are
another motorist was at fault, motorist has no available insurance coverage, and damages were incurred
a claims adjuster may work for
any of the above
auto insurance is needed primarily
as a protection against potential liability claims
