Personal Fin
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?
$1,580
The main bodily injury coverages are:
-bodily injury liability -uninsured motorist's protection -medical payments coverage
How many parts are there in a typical insurance application?
2
services offer options for narrowing suitable insurance policies for individuals.
Blank 1: Price Blank 2: quote
in an investment means minimal risk of loss, while in an investment means a measure of uncertainty about an outcome.
Blank 1: Safety or Safe Blank 2: risk or risks
Health reimbursement accounts (HRAs) are tied to high insurance policies.
Blank 1: deductible
As a rule, you should deal with insurance agencies with a or rating.
Blank 1: superior Blank 2: excellent
When tracking stocks you need to make a line chart every weeks, whereas real estate investments need to be charted every
Blank 1: two or 2 Blank 2: six or 6
Which organization renders medical care from affiliated health care providers?
EPo
Business Week, Forbes, and Fortune magazines provide general news about the overall , and detailed financial information about specific corporations.
Economy
Which of the following is not a suggestion for establishing an investment program?
Invest money first.
What are some ways of reducing premiums on automobile insurance?
Maintaining a safe driving record Completing driver training Comparison shopping for automobile insurance Installing security devices
Which of the following is not true about disability insurance?
The longer the elimination period, the higher the premiums.
Which of the following is not true about hospital expense coverage?
These policies pay all costs of being hospitalized with no limits.
Describe the relationship between the finances of a company and the market price of the stock:
They are not always correlated.
True or false: The coverage of Comprehensive Form HO-5 allows for the replacement costs for the contents of your home.
True
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:
a certain amount of time.
A(n) policy provides specified benefits regardless of whether the actual expenses are greater or less than the benefits. A(n) policy provides benefits based on the actual expense.
a. indemnity b. reimbursement
Personal property that is excluded from homeowner's insurance includes
aircraft business property rental property
A "typical" household takes into consideration the following:
amount of debt number of kids
Property covered under property damage liability insurance includes:
amp posts. buildings. street signs. vehicles.
Ben is a father of three children who is concerned about his future career with his company. His investment choices will most likely be Blank______.
conservative, less risky
In times of financial crisis, consumers should:
consider converting investments to cash. know what they owe. reduce spending.
Liability is the legal responsibility for the financial cost of another person's financial ___ or injures
cost, losses, costs, losses
True or false: 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.
false
For life insurance policies, there can be several other:
fees and charges associated.
In addition to handling the technical side of things, the insurance agent helps people find the proper kind of protection within their
financial boundaries
A health maintenance organization (HMO) is a health insurance plan that provides a wide range of health care services for a(n) Blank______ monthly premium.
fixed prepaid
Most homeowner's policies cover many perils, but not:
flood
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?
health reimbursement account
If more claims have been filed in an area, home insurance rates for people living there will be
highe
For surgical expense insurance, larger maximum fees allowed for each surgery will cause the premiums to be Blank______.
higher
Rising hospital care costs, new medical technology, and the increasing number of elderly people have helped make Blank______ one of the fastest-growing areas of the health care industry.
home health providers
Which type of insurance pays part or all of hospital bills for room, board, and other charges?
hospital expense insurance
Some disability income policies will pay only for accidents, but you want to be insured for Blank______, too.
illness
Annual reports contain which document that provides dollar amounts for sales, expenses, and profits or losses?
income statement
You should seek a disability income policy that pays benefits for Blank______.
life
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
loan
Accelerated benefits can now be used to supplement -term care needs.
long
The Blank______ provision sets forth a simple procedure to resolve what could otherwise be a complicated legal matter.
misstatement of age
The Blank______ provision sets forth a simple procedure to resolve what could otherwise be a complicated legal matter. Multiple choice question.
misstatement of age
Multiple Choice Question 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) Blank______ system.
no-fault
The important feature in a whole life insurance policy that protects your accrued benefits if you decide to drop the policy is called the
nonforfeiture clause
A provision that prevents the forfeiture of accrued benefits if you choose to drop the policy is called a(n):
nonforfeiture clause.
Stock life insurance companies generally sell:
nonparticipating policies
Changes in the market price for stocks are Blank______ to the financial health of the company itself.
not always related
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.
personal
A person with little to no investing experience may choose mutual funds because they offer:
professional management.
Other than length of time invested, what other aspect significantly impacts future value?
rate of return
the minimum recordkeeping requirements consist of which of the following?
records of dollar amount of investments records of fees or commissions payed records of income (dividends, interest payments)
The minimum recordkeeping requirements consist of which of the following?
records of fees or commissions payed records of income (dividends, interest payments) records of dollar amount of investments
Collectibles, options, gems, and precious metals are all considered. investments. This is a one-word answer.
risky
Tom wants an investment with a minimal chance of loss. He is mainly concerned about the investment's Blank______.
safety
When determining your need for life insurance, you should consider your:
stage in the life cycle. type of household.
Interest-adjusted index is the method of evaluating the cost of life insurance by taking into account the value of money.
time
The main issue to understand when factoring the net cost for insurance is the:
time value of money.
Good vision care insurance should cover diagnosing and Blank______ eye diseases.
treating
rue or false: Lending institutions require home mortgage borrowers to have home insurance.
true
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:
underinsured motorist coverage.
Most American families face a substantial loss when one spouse dies
unexpectedly
One type of risk that investors in stock take is a decrease in Blank______.
value
Identify the reasons for the risk of loss of use faced by property owners?
vandalism burglary robbery arson
The main factors that influence premiums for automobile insurance are:
vehicle type, rating territory, and driver classification.
Which of the following accurately describes the split limits of 100/300 with bodily injury liability for automobile insurance?
$100,000 limit claim per person and $300,000 limit for each accident
If current income is $50,000, then what is the amount of life insurance coverage needed using the easy method?
$245,000
The typical out-of-pocket payment for a stop-loss provision ranges from:
$4,000 to $6,000.
Total debts equal $80,000, and funeral costs equal $5,000. Using the DINK method, what is the total insurance need?
$45,000
You invest $10,000 today in hopes of purchasing a computer system and gain 3.5% on your investment. At the same time, inflation rises 4% over the same time period. It will cost you an additional Blank______ to purchase the same goods.
$50
Debts equal $100,000, and funeral costs equal $4,500. Using the DINK method, what is the total insurance need?
$54,500
If your home is insured for $100,000, and your homeowner's policy covers up to 75% for household belongings, how much coverage do you have for household belongings?
$75,000
If current income is $20,000, then what is the amount of life insurance coverage needed using the easy method?
$98,000
Joe invests $3,000. At the end of 10 years, the investment is worth $3,300. What is the rate of return for the 10-year period?
10%
Which of the following are possible limits to the coverage for additional living expenses in a homeowner's insurance policy? Multiple select question.
10% to 20% of the home's coverage full cost of temporary living expenses up to a year
Stop-loss is a provision under which an insured pays a certain amount, after which the insurance company pays Blank______% of the remaining covered expenses.
100
A person should reevaluate their insurance needs every year(s).
2
What fraction of homes in the United States are not insured or underinsured?
2/3
Which of the following are tax-postponing or tax-avoiding investment options?
401k IRA Roth IRA
the surrender charge is a sales charge for withdrawal of funds typically in the first
6 to 10 years
Disability benefits should equal:
60% to 70% of gross pay when added to other income.
The majority of people who draw on Medicare are or older.
65
A financial planner would most likely advice a 30-year-old investor to invest Blank
70% of his portfolio in growth-oriented investments
Which of the following are typical of the limits of coverage for personal belongings in a homeowner's insurance policy?
70% of the home coverage 75% of the home coverage 55% of the home coverage
Most insurers limit disability benefits from all sources to Blank______ of your take-home pay.
70% to 80%
Most policies pay Blank______ of expenses above the deductible amount; the policyholder pays the rest. Multiple choice question.
75% to 80%
In the past, most homeowner's policies contained a provision requiring that the building be insured for at least Blank______ of the replacement value.
80%
What percentage of employed Americans are enrolled in some form of managed care?
85%
Part of Medicare covers all services for inpatient hospital care after you pay a single deductible.
A
______ cuts down on paperwork and time by allowing your insurance company to pay the hospital before you receive the bill from them.
Assigning benefits
Fill in the blank question. Medicare Part covers many doctors' services and other health services not covered by Part A.
B
Medicare Part covers many doctors' services and other health services not covered by Part A.
B
Unlike Part A and B of Medicare, Part C (Medicare Advantage) is run by health care providers.
B
If you invested $5,000 four years ago and today the value of that money is $5,800, the rate of return for the entire period would be %.
Blank 1: 16 or sixteen
To calculate the total need under the nonworking spouse method, use the formula of: ( minus the age of the youngest child age)*10,000.
Blank 1: 18 or eighteen
income insurance protects your most valuable asset: your ability to earn money.
Blank 1: Disability
insurance provides regular cash income lost by employees as a result of an accident or illness.
Blank 1: Disability Blank 2: Income
compiles websites from nonprofits, federal and local websites, and many other sources to present a complete health resources website.
Blank 1: Healthfinder
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.
Blank 1: Medicaid
insurance makes up the difference between Medicare payments and medical costs not covered by providing supplemental insurance that can be purchased.
Blank 1: Medigap or MedSup
With disability insurance, there is a need for both and coverage.
Blank 1: accident or injury Blank 2: sickness or illness
Accurate recordkeeping can help you decide if you want to invest funds in a particular investment.
Blank 1: additional, more, extra, or less
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.
Blank 1: age
The three sources of information used by your insurance company to determine insurability are your , the results of the medical examination, and the report.
Blank 1: application Blank 2: inspection
the three sources of information used by your insurance company to determine insurability are your , the results of the medical examination, and the report.
Blank 1: application Blank 2: inspection
Annual reports describe a statement of financial position which describes the company's , , and owners' equity.
Blank 1: assets Blank 2: liability or liabilities
annual reports describe a statement of financial position which describes the company's , , and owners' equity.
Blank 1: assets Blank 2: liability or liabilities
When looking at life expectancy tables, the life expectancy of a female at age 25 is 57. 57 is the number of additional, or remaining, years a female may expect to live.
Blank 1: average or mean
Accelerated benefits are life insurance policy proceeds paid to a terminally ill policyholder the time of death.
Blank 1: before, prior, or until
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 .
Blank 1: cash Blank 2: premium or payment
Whenever your situation substantially, you should update your insurance coverage.
Blank 1: changes
Insurance agents may be compensated with a salary or paid on
Blank 1: commission
The risk of physical damage to your car such as fire, theft, falling objects, and hitting an animal are covered by ___ physical damage.
Blank 1: comprehensive
The type of structure and the type of materials used influence the cost of insurance coverage.
Blank 1: construction or building
When purchasing insurance you can get the best value by selecting the appropriate ___amount and being aware of ___that affect insurance costs.
Blank 1: coverage or policy Blank 2: factors, aspects, conditions, variables, or risks
With industrial life insurance, also known as insurance, agents collect weekly, bimonthly, or monthly premiums at the insured's . These are one-word answers.
Blank 1: debit, industrial, home-service, or home service Blank 2: home or house
Increasing your lowers your premium.
Blank 1: deductible or deductibles
People often overlook income insurance because they feel young and healthy now.
Blank 1: disability
People choose mutual funds because they invest in many different investments at one time. This is known as
Blank 1: diversification, diversifying, or diversity
Nonparticipating life insurance policies do not provide annual policy
Blank 1: dividends, refunds, dividend, or refund
The benefit limits provision defines the maximum benefits possible in terms of either a(n) amount or a number of in the hospital.
Blank 1: dollar, cash, or monetary Blank 2: days or day
HMO basic health services include inpatient, outpatient, maternity, mental health, substance abuse rehabilitation, and care.
Blank 1: emergency
A(n) provider organization is one that renders medical care from only affiliated health care providers and will not reimburse for charges from nonaffiliated health care providers.
Blank 1: exclusive or epo
One of the main factors when determining which companies to buy policies from is whether or not the company is strong.
Blank 1: financially or economically
A personal property __, for a homeowner's insurance policy requires a detailed description of the items covered and a periodic household ___ to verify the current value.
Blank 1: floater Blank 2: appraisal, evaluation, or inventory
Spouses that were inadequately insured included % of widows and % of widowers
Blank 1: forty-five or 45 Blank 2: thirty-seven or 37
Payment to begin at a(n) date is referred to as a deferred annuity.
Blank 1: future or later
Most private insurance companies are providers of health insurance policies through employers.
Blank 1: group
Under the guaranteed renewable policy provision, the insurance company cannot raise premiums unless it raises premiums for all members in your
Blank 1: group, class, or plan
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.
Blank 1: high
The the deductible, the less expensive the policy.
Blank 1: higher, more, greater, or larger
Medicare insurance is financed from a portion of Social Security taxes.
Blank 1: hospital or hospitalization
Blue Cross is an independent, nonprofit membership corporation that provides protection against the cost of care.
Blank 1: hospital, medical, or health
Preventive care for an HMO includes checkups, screening, diagnostic testing, and routine
Blank 1: immunizations, shots, immunization, vaccines, or vaccination
Fill in the blank question. When establishing the minimum recordkeeping requirements you want to keep track of dividends, interest paid, and other sources of
Blank 1: income
When establishing the minimum recordkeeping requirements you want to keep track of dividends, interest paid, and other sources of
Blank 1: income
An annuity is a contract that provides regular for as long as a person lives.
Blank 1: income or payments
A growth company is a company that has better than average earnings potential and is expected to have revenue that can be high or low, but is
Blank 1: increasing, rising, growing, reinvested, or expanding
Premium payments, dividends, cash-value buildups, and present value analysis are all factors used to determine the -adjusted index.
Blank 1: interest
When searching for information on investments, selective use of the is essential.
Blank 1: internet, information, web, or source
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?"
Blank 1: investing
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.
Blank 1: investments, investment, contribution, contributions, property, or interests
For the nonworking spouse method, extra costs not considered include the surviving spouse's time away from their to care for the family.
Blank 1: job or work
With disability plans, the longer the waiting period, the the premiums.
Blank 1: lower or smaller
One factor that affects the price of a life insurance policy is the rate of death among policyholders, also called rate.
Blank 1: mortality or death
One of the many common uses of life insurance proceeds is to pay off a home and other debts at the time of death.
Blank 1: mortgage or loan
A(n) life insurance policy will have guaranteed premiums
Blank 1: nonparticipating, nonpar, or non-participating
a(n) life insurance policy will have guaranteed premiums.
Blank 1: nonparticipating, nonpar, or non-participating
A life insurance policy is valuable only if it meets your
Blank 1: objectives, needs, or requirement
Coordination of benefits (COB) is a method of integrating the benefits payable under more than health insurance plan.
Blank 1: one or 1
Mutual life insurance companies generally sell or par policies.
Blank 1: participating
Term life insurance provides protection for a specific of time.
Blank 1: period, portion, amount, duration, or length
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.
Blank 1: prearranged, predetermined, set, fixed, given, approved, flat, or negotiated
If financial problems occur, a business will pay dividends to stockholders first.
Blank 1: preferred
Managed care refers to health plans that provide comprehensive health care to members.
Blank 1: prepaid
Unlike Part A and B of Medicare, Part C (Medicare Advantage) is run by health care providers.
Blank 1: private
MedlinePlus, the world's most extensive collection of published medical information, was originally designed for health and .
Blank 1: professionals, practitioner, practitioners, or providers Blank 2: researchers or researcher
When selling new securities, corporations must release all information regarding the investment in a document known as a(n)
Blank 1: prospectus
A point-of-service plan is a network of selected contracted participating
Blank 1: providers, doctors, or physicians
Insurance protection is available from several and sources.
Blank 1: public Blank 2: private
Often listened to in a car and watched at home, and can be good sources to gather information on investments.
Blank 1: radio Blank 2: television or tv
When doing research on your investments, it is important to save the information in order to your investment later on.
Blank 1: reevaluate, evaluate, review, monitor, or reassess
A policy that covers "reasonable and customary" medical expenses limits to the usual charges of medical providers in an area.
Blank 1: reimbursement, payments, coverage, or reimbursements
With a option, you can continue your existing term coverage for the next period without a medical reexamination.
Blank 1: renewable or renewability
The amount you can collect with collision insurance is limited to the actual ___ value of the automobile at the time of the accident
Blank 1: retail, cash, market, selling, sale, monetary, or resale
Fewer accidents and less vandalism occur in areas than in urban cities.
Blank 1: rural, country, or suburban
Under the life income option, the amount received by the beneficiary depends on the and attained of the individual receiving the benefits at the time of the insured's death.
Blank 1: sex or gender Blank 2: age
Collectibles, options, gems, and precious metals are all considered investments. This is a one-word answer.
Blank 1: speculative or risky
Some investors do not utilize investments in their portfolio due to the high level of risk.
Blank 1: speculative or risky
Medicaid is administered by each individual but is funded by a combination of state and funds.
Blank 1: state Blank 2: federal
Regardless of whom you purchase insurance from, make sure that the company and employees are licensed in your
Blank 1: state or area
By investing in a Roth IRA, your investment is potentially free.
Blank 1: tax or taxes
The consequences of must be considered when selling an investment.
Blank 1: taxes or tax
Term life insurance is a(n) life insurance option.
Blank 1: temporary or basic
A conversion option allows you to change a(n) policy to a(n) life policy.
Blank 1: term Blank 2: whole
Year-to-year real estate values nationally increase % on average.
Blank 1: three or 3 Blank 2: five or 5
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.
Blank 1: trustee
If suicide occurs during the first years the policy is in force, only the paid are paid to the beneficiary.
Blank 1: two or 2 Blank 2: premiums or premium
When tracking stocks you need to make a line chart every weeks, whereas real estate investments need to be charted every months.
Blank 1: two or 2 Blank 2: six or 6
A poor disability plan pays you only when you are to work at any job.
Blank 1: unable, disable, or disabled
Under the annuity option, payments vary monthly based on changes in investment returns.
Blank 1: variable
The money in a flexible spending account must be used for health care and used by the end of the
Blank 1: year
The money in a flexible spending account must be used for health care and used by the end of the .
Blank 1: year
Name an independent membership corporation that provides protection against the cost of hospital care:
Blue Cross
Which type of insurance is complete major medical insurance that has a very low deductible?
Comprehensive
Which of the following is the last step for effective investment planning?
Continue to evaluate your investment program.
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.
False
A health insurance plan that provides a wide range of health care services for a fixed prepaid monthly premium is called a:
HMO
PPOs offer the services of doctors and hospitals at a discount rate, but are more flexible in the patient's choice of physician than Blank______.
HMO
______ 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. Multiple choice question.
HSA
medical expense insurance pays most of the costs exceeding those covered by the hospital, surgical, and physician expense policies.
Major
Which of the following insurance policies is NOT considered to have a poor value?
Major medical insurance
Which type of health insurance plan pays the large costs of hospital stays and of surgeries—in other words serious injuries or long illnesses?
Major medical insurance
which type of health insurance plan pays the large costs of hospital stays and of surgeries—in other words serious injuries or long illnesses?
Major medical insurance
What program was designed to provide medical assistance to low-income individuals and families?
Medicaid
Which part of Medicare helps pay for doctors' services and a variety of other health services and supplies? Multiple choice question.
Medical (Part B)
Which part of Medicare helps pay for doctors' services and a variety of other health services and supplies?
Medicxal B
Which insurance supplements Medicare by filling the difference between Medicare payments and medical costs not covered by Medicare?
Medigap insurance
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?
MedlinePlus
Which of the following are business periodicals that provide information and advice designed to improve investment skills?
Money Kiplinger's Personal Finance BusinessWeek
Which of the following provides a single-access point to consumer medical resources?
NIH Health Information
A group of doctors and hospitals that agree to provide health care to members at prearranged fees is called Blank______.
PPO
With an HMO you must stay within one network of doctors, yet with a(n) Blank______ you can choose your own doctor.
PPO
A point-of-service plan is a network of selected contracted participating . This is found in the discussion of preferred provider organizations..
Physican
Which of the following are not good ideas when applying and maintaining health and disability insurance?
Stretch the truth to get a lower rate. Sign immediately, ignoring the free-look provision
Which of the following is important when buying life insurance?
Understand your policy. Make sure your company is licensed in your state. Inform your beneficiaries.
Supplemental health services for an HMO include
Vision, pharmaceutical
Disability income insurance protects your most valuable asset. which is your:
ability to earn income.
Life insurance policy proceeds paid to a terminally ill policyholder before death are called
accelerated benefits
This activity helps you spot opportunities to maximize profits or reduce losses when you sell your investments:
accurate recordkeeping
The method of claim settlement that pays you based on the current replacement cost of an item less depreciation is called the
actual cash value method
Which fee is usually a flat fee per year to pay for paperwork of the insurance policy?
administrative fee
Under the waiver of premium disability benefit, the company waives any premiums due after the onset of a total and permanent disability, as long as it occurs before you reach a certain
age
Coverage included from homeowner's insurance includes all of the following except:
animals
A contract that provides a regular income for as long as a person lives is called a(n)
annuity
Wage loss insurance will reimburse you for:
any salary or income lost due to injury in an automobile accident.
Dividends:
are not a requirement.
A good health insurance provides which of the following
at least $1 million lifetime maximum for each family member a provision so the policyholder will pay no more than $6,000 out of pocket a year
The provision that pays your premium out of your policy's cash value if it is sufficient is called a(n)
automatic premium loan
Key provisions in the Patient Protection and Affordable Care Act of 2010 include Blank______.
banning companies from dropping people when they get sick prohibiting lifetime caps on coverage providing tax credits for small businesses to make employee coverage affordable
A combination of hospital expense insurance, physician expense insurance, and surgical expense insurance is called
basic health insurance
A combination of hospital expense insurance, physician expense insurance, and surgical expense insurance is called Blank______.
basic health insurance
An insurance company, in order to get your business needs, must
be licensed in your state
In terms of dollar amount or a number of days in the hospital, what determines the maximum amount paid?
benefit limits
A growth company has:
better than average earnings potential.
There are several ways to establish an investment program. One suggestion is to pay first.
bills
Name an independent, nonprofit membership corporation that provides protection against the cost of surgical and medical services.
blue shield
The two main categories of automobile coverage are:
bodily injury. property damage.
Which of the following is not a way to use a health savings account (HSA)? Multiple choice question.
buy private policy
Which part of Medicare—which is also run by private health insurance companies—is less expensive and offers extra benefits?
c
A good disability plan would pay you when you Blank______.
can only work part-time at your regular job are unable to work your regular job
Anytime you invest in speculative investments you should:
carefully review any investments.
Along with the actual credit card, what other features of the card would provide funds in case of an emergency?
cash advances
Which of the following is not considered a speculative investment?
certificates of deposit
insurance companies look at which of the following as guidelines for preferred rates:
cholesterol levels driving records family history
A provision under which the insurer and insured share the covered losses is called Blank______. .
coinsurance
What kind of insurance pays for damage to an automobile in case of an accident regardless of fault?
collision
Which of the following would be considered speculative investments?_.
commodities precious metals options
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:
contingent beneficiaries.
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
contingent beneficiary
A provision under which the insured pays a flat dollar amount each time a covered medical service is received is called:
copayment
Which of the following best defines homeowner's insurance?
coverage for your residence and its financial risks
Line of is a short-term loan that is approved before money is actually needed.c
credit
In order for your beneficiary to redeem the policy, they will need to have your Blank______ certificate and your insurance policy.
death
If interest rates for new comparable bonds increase, the value of a bond will
decrease
Which type of insurance provides reimbursement for the expense of services and supplies and encourages preventive care for teeth?
dental expense insurance
"Good" vision care insurance should cover which of the following?
diagnosing and treating eye diseases basic eye surgery glasses and contacts periodic eye examinations
The potential return on an investment should be:
directly related to the risk assumed.
Which insurance provides payments to replace income when an insured person is unable to work for a long period of time?
disability income insurance
Preferred stockholders receive:
dividends before common stockholders.
Physician expense insurance provides benefits for which of the following?
doctors' fees for nonsurgical care lab tests X-rays
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
double indemnity
Which of the following are factors in setting a driver classification?
driving record age and sex marital status
The Patient Protection and Affordable Care Act bans insurance companies from Blank______ coverage when they get sick.
dropping people from
The Patient Protection and Affordable Care Act bans insurance companies from Blank______ coverage when they get sick. Multiple choice question.
dropping people from
An example of an endorsement on a homeowner's policy is Blank______ coverage.
earthquake
Age, marital status, and dependency requirements are usually specified in the Blank______ provision of an insurance policy.
eligibility
an amount of your money that you obtain quickly in case of an immediate need is a(n) Blank
emergency fund
What are the sources of disability income coverage?>
employer plans worker's compensation Social Security
n a group health insurance plan arrangement, Blank______ and Blank______ are most likely to pay for the cost of health care.
employers employees
A(n) is an addition to coverage for a homeowner's policy, such as earthquake insurance.
endorsement
The limited installment payment option allows for the payment of life insurance to be paid in Blank______ periodic installments for a specified number of years after your death.
equal
The first step for effective investment planning is to:
establish your investment goals.
Coordination of benefits prevents you from collecting benefits from two or more group policies that would in total Blank______ the actual charges.
exceed
A is state legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident.
financial responsibility law
When looking to buy insurance, you should purchase from a company that is:
financially strong.
Which of the following are some of the typical asset classes utilized in asset allocation?
foreign stocks small, medium, and large corporation stocks bonds
Additional living expense coverage pays for the cost of
g in a temporary location while your home is being repaired
"Safe" investments include:
government bonds. certificates of deposit. select mutual funds.
You should aim for a benefit amount that, when added to your other income, will equal 60% to 70% of your Blank______.
gross pay
A nonparticipating policy will have:
guaranteed premiums.
A type of coverage that protects you against your insurance company dropping you if your health becomes poor is called:
guaranteed renewability.
With a(n) Blank______ policy provision, the insurance company cannot cancel unless you fail to pay premiums when due.
guaranteed renewable
Credit lines and credit cards:
have a maximum dollar limit
What qualifications must you have to be eligible for Medicare?
have certain disabilities be 65 or older
One difference between point-of-service (POS) plans and preferred provider organizations (PPOs) is that POS plans:
have primary care physicians who coordinate patient care.
Sally is living in a dorm and her computer is stolen. The loss is probably covered by:
her parent's homeowner's policy.
Rising hospital care costs, new medical technology, and the increasing number of elderly people have helped make Blank______ one of the fastest-growing areas of the health care industry. Multiple choice question.
home health providers
Basic health insurance coverage is a combination of:
hospital expense insurance. surgical expense insurance. physician expense insurance.
Which type of policy pays benefits when you are hospitalized that are in cash and you can spend as you choose?
hospital indemnity policy
As construction costs rise, you should __ the amount of insurance coverage.
increase
Many beginning investors believe that real estate is an investment that
increase every year
Which type of insurance agent represents multiple carriers and can offer more choices?
independent agents
The company determines your insurability by means of the information, the results of the medical examination, and the.
inspection report
Several incentives exist to reduce premium costs on homeowner's policies including:
installing security alarm systems. installing smoke detectors and fire extinguishers. added dead bolts to your doors.
Taxes can affect which of the following areas of investing?
interest dividends rental income
What risk is the result of changes in the interest rates of the economy?
interest rate risk
Which type of limit stipulates expense limits for individual items as opposed to a maximum total limit?
internal
What resource is essential for up-to-date investment information and investment research?
internet
Many radio and television stations broadcast Blank______ as part of their regular news programs.
investment and economic information
Which of the following are good sources of investment information?
investment brokers libraries account executives investor relations departments
Which department in a corporation provides information regarding investing in that company? This information can usually also be found on the corporation's website.
investor relations department
The eligibility provision defines who:
is entitled to benefits under the policy.
Which of the following would not be a good choice when investing for investment income?
just any common stock
Under what option are insurance payments sent to beneficiaries for their entire life?
life income option
Benefits for disability plans have a wide variety of payout ranges. The most desirable benefits are those that are paid for Blank______.
liife
Which option pays beneficiaries in equal, periodic installments for a specified number of years after the death of the insured?
limited installment payment
Some life insurance companies sell policies with a rider that will pay out part of the death benefit for
long-term care
Which type of insurance is the fastest growing type of insurance today?
long-term care
Saving money for retirement would be considered a(n)
long-term goal
One type of risk to personal property is physical damage. The second type of risk is
loss of use
Cancer insurance, trip insurance, death insurance, and dread disease insurance are all considered to have a(n) value.
low
The most widely used option of insurance proceeds payment is the
lump-sum payment
The most widely used option of insurance proceeds payment is the Blank
lump-sum payment
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?
major medical expense insurance
When looking to switch insurance companies, it is important to:
make sure you are still insurable.
Prepaid health plans that provide comprehensive health care to members are called Blank______.
managed care
"I want to make $300 quarterly for the next three years." This goal is not only specific but is
measurable
Most of the money automobile insurance companies pay in claims goes for
medical expenses other costs that arise when someone is injured legal expenses
Basic health services for an HMO include inpatient and outpatient services such as (found in the discussion of health maintenance organizations) Blank______.
mental health emergency care substance abuse
HMO preventive care services include periodic checkups as well as
mmunizations diagnostic testing screening programs
Which of the following medical expenses are not covered by Medicare?
most immunizations some types of dental care private-duty nursing
For investment income, which of the following would be good choices?
municipal bonds corporate bonds preferred stocks
An investment company that pools the money from many investors to invest in a variety of securities is called a
mutual fund
If an investment decreases in value, the rate of return will be Blank______
negative
The reasons for the increased need for home health care include
new medical technology rising hospital costs older U.S. population
The Health Insurance Portability and Accountability Act of 1996 provides:
new standards so workers would not lose health insurance if they change jobs. a parent with a sick child can move from one health plan to another without paying more for coverage than other employees do.
In a Blank______ system, drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.
no-faul
Losses from floods and earthquakes are usually ___ by homeowner's insurance.
not covered
Price quote services review your age, health status, and Blank______ with computer data banks to deliver to you a selection of policies suitable to the needs that you specify.
occupation
For a lump-sum payment, the insurance company pays the face amount of the policy in Blank______ installment to the beneficiary or to the estate of the insured.
one
Which of the following would be considered speculative investments?
options commodities precious metals
When making a simple line chart to track your investments, it is important to have the original purchase date and
original purchase price
When making a simple line chart to track your investments, it is important to have the original purchase date and Blank______.
original purchase price
strict liability is when you are held responsible for your actions, while vicarious liability is when you are held responsible for actions of ____ person
other or another
The main purpose of a policy provision stating "reasonable and customary" is to prevent
overcharge
Equity capital is money that a business obtains from its
owner
A growth company generally:
pay little or no dividend
Self-insurance is an arrangement in which a company collects premiums from employees and
pays medical benefits as needed
Self-insurance is an arrangement in which a company collects premiums from employees and Blank______.
pays medical benefits as needed
Which of the following are covered by renter's insurance?
personal property additional living expenses personal liability
Which of the following are covered by a homeowner's policy?
personal property other structures house
Which type of insurance provides benefits for doctors' fees for nonsurgical care, X-rays, and lab tests?
physician expense insurance
A network of selected contracted participating providers, also called an HMO-PPO hybrid, is a (found in discussion of preferred provider organizations):
point-of-service plan
Managed care is offered by which of the following?
point-of-service plans preferred provider organizations health maintenance organizations
Coinsurance is a provision under which the Blank______ share the covered losses.
policyholder and the insurer
Negligence is failure to take reasonable or ordinary___ in a situation
precaution, responsibility, precautions, actions, caution, responsibilities, or action
Which of the following have little chance of providing a predictable income?
precious metals collectibles gemstones
Service benefits are always Blank______ a coverage stated in dollar amounts.
preferable to
Out-of-pocket limit is a provision in an insurance policy that limits the amount one must pay, but this causes the to increase.
premium
Which medical expense is covered by Medicare?
prescription drug
Flexible spending accounts allow you to contribute Blank______ dollars to an account managed by your employer.
pretax
You shouldn't select a company based on Blank______ alone.
price
Which of the following refers to the amount of impact inflation has on a fixed amount of money?
reduction of purchasing power erosion of purchasing power loss of purchasing power
The main reason to purchase an annuity is to give you Blank______ income for the rest of your life.
regular
The primary reason to buy an annuity is to give you:
regular income for life.
Which policy provides benefits based on the actual expense incurred?
reibursement
Insurance similar to homeowner's that is available for tenants is
renter's insurance
With any speculative investment, it is extremely important to deal with Blank______.
reputable dealers
The reasons for the increased need for home health care include Blank______.
rising hospital costs new medical technology older U.S. population
Hospital expense insurance pays part or all of hospital bills for , board, and other charges.
room
In a second-to-die policy, the death benefit is paid when the Blank______ spouse dies.
second
The main risk involved with a Blank______ health plan is the financial burden if the medical bills are greater than the amount covered by premium income.
self-funded
Medicaid is funded by Blank______. Multiple choice question.
state and federal funds
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):
stop-loss.
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): Multiple choice question.
stop-loss.
health services for an HMO include vision and pharmaceutical services.
supplemental
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.
tax
As an investor, you want to ask your real estate agent about which of the following?
taxes financing building condition
Losses from floods are not covered under homeowner's insurance, but by:
the National Flood Insurance Program.
The largest provider of information in the world is Blank
the U.S. government
The two factors that greatly affect the cost of health insurance are:
the amount of coinsurance. the size of deductible.
The reason for the incontestability clause is:
the beneficiaries should not be forced to suffer because of the acts of the insured.
The investor relations department of a company can provide a wealth of information about
the corporation
Which of the following are factors that affect the price of an insurance policy?
the costs of doing business the mortality rate it expects among policyholders the return on investments
If your health insurance policy has a limit of $1,000 per hospital day, and your hospital charges $900 per day:
the entire $900 will be covered.
Who requires the release of the prospectus for corporations selling new securities?
the federal government
Under the waiver of premium disability benefit, a person that becomes completely disabled has her or his premiums paid for by:
the insurance company.
If the policyholder decides on the "left with the company" option for a life insurance policy, the beneficiary will receive:
the interest earned.
A place to gather information regarding investments that is free to the public and can be accessed during normal business hours is:
the library.
Which of the following are factors that affect the price of an insurance policy?
the mortality rate it expects among policyholders the return on investments the costs of doing business
If a policyholder commits suicide three years after purchasing the policy, the beneficiary will receive:
the proceeds of the policy.
Property damage liability protects you against financial loss when you damage:
the property of others.
You lose buying or purchasing power when Blank______.
the rate of return on your investment is less than inflation
Multiyear level term insurance is advantageous because it allows you to pay
the same premium for the life of the policy.
Multiyear level term insurance is advantageous because it allows you to pay:
the same premium for the life of the policy.
The coverage of HO-3 policies includes which of the following perils?
theft freezing smoke fire and lightning
Many people often overlook disability income insurance because:
they feel young and healthy now.
Another factor affecting investing is your age. Younger investors can afford to invest a larger percentage in growth stocks because if their investment fails:
they have time to make it up.
What type of policy supplements your basic personal liability coverage and provides protection for injury claims?
umbrella policy
As many as two-thirds of homes in the United States are not insured or are
underinsured
Supplemental health services for an HMO include Blank_
vision pharmaceutical
The coverage of tenants form HO-4 covers damages to personal property from all of the following perils except:
war.
If you are the beneficiary of a policy, it is most important to know
where the policy is kept
Tenants Form HO-4 covers personal belongings from the perils of which of the following?
windstorm fire smoke
Disability income insurance may also be provided by your employer, Social Security, or Blank______.
worker's compensation
Which of the following is not a source of ratings for insurance companies?
www.insurancecompanyconsumerguides.com
A home located in an area where there is a history of high claims will have premiums.
Blank 1: high, higher, greater, larger, bigger, or increased
Some companies offer home insurance Blank______ to policyholders who are nonsmokers or who are "claim free" for a certain number of years.
discounts
Strict liability is when you are held responsible for your actions, while vicarious liability is when you are held responsible for the actions of
other
The personal belongings of students in college housing are usually covered by the home insurance policies of their
parents or guardians
With the replacement value method of insurance coverage, you receive:
the full cost of repairing or replacing a damaged or lost item.
Subrogation means that the insurance company has a right to recover the amount it pays for the loss from Blank______.
the person responsible for the loss
The coverage of Comprehensive Form HO-5 allows for the replacement costs for the contents of your home and guaranteed replacement cost coverage on
Blank 1: buildings or structures
Banks require home mortgage borrowers to have ___ insurance.
Blank 1: home, property, homeowners, homeowner's, or house
Most homeowner's insurance policies have a built-in __ clause that increases coverage as property values increase.
Blank 1: inflation or escalator
Underinsured motorist's coverage provides financial protection when another driver has insurance, but coverage than needed to cover the damages.
Blank 1: less, insufficient, inadequate, or below
The cost of mobile home insurance is most heavily affected by __and by the method used to attach the housing unit to the __
Blank 1: location or area Blank 2: ground
Medical payments coverage covers bodily injury in your car including friends, carpool members, and others who ride in your vehicle who may be injured in an
Blank 1: passengers, people, persons, everyone, injuries, occupants, anyone, or others
The main influences on the amount of paid for home and property insurance include location, type of structure, and policy type.
Blank 1: premium, fee, price, or premiums
Under COBRA, employees of which of the following types of organizations are covered?
State government Local government Private companies
An assigned risk pool consists of people who are unable to obtain Blank______ insurance.
automobile
When purchasing insurance you can get the best value by selecting the appropriate coverage amount and:
being aware of factors that affect insurance costs.
The coverage of Comprehensive Form HO-5 allows for the replacement costs for the contents of your home and guaranteed replacement cost coverage on
buildings or structures
Beyond the standard bodily injury and property damage coverage, other possible automobile coverage includes Blank______.
car rental towing service wage loss
The Blank______ 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.
coordination of benefits
The federal Consolidated Omnibus Budget Reconciliation Act of 1986 requires many employers to offer group health benefits to:
employees and dependents who would normally lose group health insurance.
Mobile home insurance coverage is very
expensive
Which of the following are negligent actions?
failing to remove large items from a stairway improperly supervising children in a swimming pool
Under the actual cash value (ACV) method, the payment you receive is based on:
the current replacement cost of a damaged or lost item less depreciation.
Your insurance protection for your home should be based on the amount needed to ___ or repair your house and not the amount you originally paid for the home.
Blank 1: rebuild, build, replace, or fix
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.
Blank 1: subrogation
True or false: Your homeowner's insurance covers damage to your home, other structures on your property, and your automobile.
False
What do insurance company actuaries rely on to establish rates and benefits?
General statistical models
you inherited a $25,000 ring from your grandmother. You should cover it with a(n)
personal property floater
The method of settling claims that pays you the full cost of repairing or replacing the item is called the Blank_
replacement value method
Towing and emergency road service coverage pays for the cost of getting your vehicle to a
service station, but not for the cost of repairs
Multiple Choice Question The purpose of a financial responsibility law is to force drivers to Blank_
show their ability to cover the costs of damage or injury from automobile accidents
