Fin 120 Unit C

Sally was driving her own car and collided with a pickup truck. Sally sustained $125,000 in injuries, and her passenger sustained $10,000 in injuries. If her coverage was 100/300/50, what are the total medical expenses the insurance company would pay for this accident?

$110,000

Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. If their two children are ages 9 and 5 years old, how much do they need? (USe $10,000 per child)

$130,000

Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. They have determined that their annual income is $70,000 and their net worth is now $150,000. What is the amount of life insurance they should carry using the "nonworking" spouse method?

$140,000

Cynthia was charged $300 for a specialist office visit. Her indemnity policy will pay $125. What amount will she have to pay?

$175

Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. Use the easy method to determine how much insurance she should carry.

$196,000

Georgia has a health insurance policy that includes a deductible of $500. If her total bill is $3,000, how much will her insurance pay?

$2,500

Last month some of your friends were injured in an accident. Their total injuries were as follows: •Brenda$85,000 •Raquel$125,000 •Louis$40,000 Coverage was 100/300/50. What was the total medical coverage in this accident?

$225,000

Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. They have determined that their annual income is $70,000 and their net worth is now $150,000. What is the amount of life insurance they should carry using the easy method?

$343,000

Sandy went to the doctor three times, and each appointment cost $200. Her copayment was $25 per visit. How much was Sandy required to pay in total for her three visits?

$75

How much does a private income insurance program pay for loss of normal income from a disability?

40-60%, with some plans paying up to 75%

Frank, age 38, was killed in a car accident. Which of the following riders provided an additional benefit for his heirs?

Accidental death benefit

Which of the following is a type of motor vehicle insurance available to drivers? Wage loss insurance Towing and emergency road service coverage Rental reimbursement coverage All of the these may be available to drivers None of the these are available to drivers

All of the these may be available to drivers

The most common risks are Personal risks Property risks Liability risks All of these are common risks

All of these are common risk

Which of the following is correct about your health plan's summary plan description? It contains information about the coverage of dependents. It contains information about what services will require a co-pay. It contains information about circumstances when your employer can terminate your health plan benefits. All of these are correct. None of these is correct.

All of these are correct

Homeowner's insurance covers all of the following except A detached garage Trees and shrubs A toolshed Personal property

All of these are covered

All of the following are sources of disability income except Worker's compensation. Employer plans. Social Security. Private income insurance programs.

All of these are sources of disability income

Tom wanted to receive as many discounts on his home insurance as possible. Which of the following would NOT provide a discount? Smoke detector Fire extinguisher Deadbolt locks Alarm systems

All of these should provide a discount for Tom

Amber had permission from Bradley to borrow his car to run some errands. Unfortunately, while Amber was driving, she looked down to change songs on her iPod and sideswiped a car and hit a bicyclist. Based on her experience, which of the following would be true?

Amber's insurance policy should cover any property damage claims since she was driving Bradley's car with his permission.

Rising health costs are due to all of the following except

Baby boomers using fewer health care services

Brittany and Brandon are both charged $250 for an office visit to the same specialist. Brittany's reimbursement policy has a deductible of $300. Once she has met the deductible, the policy will cover the full cost of her visits. Brandon's indemnity policy will pay him $150, the maximum amount his plan provides for a visit to any specialist. Which of the following is correct?

Brittany will pay more because she must pay the entire bill since she has not met her deductible while Brandon will have part of his bill paid by his policy.

If you want to purchase term insurance, you will receive all of the following except

Cash value

Henry was driving at dusk and hit a deer running across the road. His damage would be covered under his

Comprehensive physical damage coverage

Zachary lived in a neighborhood that was known for gang activity. One day, he noticed that his car had been vandalized. This damage would be covered under his

Comprehensive physical damage coverage

A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. Which of the following riders should he consider?

Cost-of-living protection

This life insurance is used to pay off certain debts, such as auto loans, in the event that you die before the debts are paid in full. Which of the following is not the best buy for the amount of protection offered for an individual?

Credit life

Michael is concerned that the health insurance option he is considering plays upon unrealistic fears. He is most concerned about a

Dread disease policy

Donald and Charlene are married and do not have any children. They plan to ensure that the other will not be unduly burdened by debts in case one of them dies. Each plans to continue to work after the other one dies. Which method are they using to determine their life insurance needs?

Dual income, no kids method

Judy and James have a 4-year-old child. They plan to purchase life insurance using this formula: Current income × 7 × 70%. Which method are they using to determine their life insurance needs?

Easy method

When Stanley was visiting Elaine, he tripped on her front porch step and sprained his ankle. His injuries were covered by

Elaine's medical payments coverage.

Under the Patient Protection and Affordable Care Act of 2010, which of the following is NOT correct?

Employers must offer continuing coverage through COBRA for up to 24 months after you leave your job

Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. They will consider factors such as Social Security and liquid assets. Which method are they using to determine their life insurance needs?

Family need method

Anna contributes pretax dollars to an account managed by her employer for her health care expenses. If she does not spend all of her money by the end of the year, she may forfeit it. What kind of plan does she have?

Flexible spending account

Pam just started working at XYZ Widget Company and finally wants to get insurance coverage through her employer. She does not want to take a medical exam to get coverage, because she has some underlying health conditions and is concerned that she might not qualify for a policy. Which of the following life insurance policies should she apply for?

Group life

Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. Which of the following riders should she consider?

Guaranteed insurability option

If you are concerned that your disability insurer may try to cancel your coverage if your health becomes poor, you should look for a plan that offers

Guaranteed renewability

Yogi is applying for insurance for his new home. Which of the following is correct?

He should base the amount of insurance on the price to rebuild or repair the new home.

Steve's employer offers a health plan that stresses preventive services and covers routine immunizations and checkups, screening programs, and diagnostic tests. What kind of plan does his employer offer?

Health maintenance organization (HMO)

Monica's employer offers a health insurance plan with a very high deductible. In addition, her employer provides a fund for her to spend specifically on health care. What kind of plan does she have?

Health reimbursement Account

What is the most important part of an insurance agent's job?

Help you select the proper kind of protection within your financial boundaries.

Vincent is applying for insurance for his new home. Which of the following is correct?

His personal belongings should be covered with his home at 55-75% of his home's insured amount

The type of health insurance coverage that pays for some or all of the daily costs of room and board during a hospital stay is

Hospital expense

When considering why to buy annuities, which of the following statements is correct?

It is better to fully fund your IRA, Keogh, or 401(k) before buying an annuity.

The settlement option that pays the life insurance proceeds to the beneficiary for as long as she or he lives is called

Life income option

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is

Major medical expense

Jack needs comprehensive medical coverage. However, his income is very low. What plan should he investigate?

Medicaid

Which of the following is a government health care program?

Medicare

The main goal when setting insurance goals is to

Minimize personal, property, and liability risks.

This term life insurance policy will guarantee that you will pay the same premium for the duration of your policy.

Multi year level term

Choose all of the items which should be on your resume

Name email address phone #

Jeff and Erica have two children. They plan to purchase life insurance using this formula: (18 minus Youngest child's age) × $10,000. Which method are they using to determine their life insurance needs?

Non-working spouse method

What is the primary purpose of medical expense insurance?

Pay actual medical costs for illness or injury.

Anything that may possibly cause a loss is called a

Peril

Personal property insurance covers

Personal property items up to 55-75% of the insured value of the home.

The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is

Physician expense

Which of the following is true about an elimination period?

Premiums for a plan with an elimination period of 90 days will be less than premiums for a plan with an elimination period of 60 days.

Madeline had a severe allergy attack and crashed her car into a telephone pole while sneezing. The damage to the telephone pole would be covered under Madeline's

Property damage liability coverage

Most people buy life insurance to

Protect the people who depend on the insured from financial losses caused by his or her death.

If you choose to take responsibility for the negative results of a risk, you are using

Risk assumption

Which of the following is NOT one of the commonly used general risk management techniques

Risk maximization

If you choose to insure your home or your vehicle, you are using

Risk shifting

The type of health insurance coverage that may specify the maximum payment amount for each type of operation is

Surgical expense

Which of the following is NOT a type of permanent insurance?

Term life

Georgia was supposed to pay her premium by the 15th of the month. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium (without penalty)?

The grace period

Which of the following about individual health insurance policies is correct? They are used by employees of large organizations. All insurance companies that offer this type of policy are required to charge the same rates. They are primarily for employees of small companies. They are permitted for individuals only, not for families. They are available for the self-employed or others who are dissatisfied with

They are available for the self-employed or others who are dissatisfied with the coverage that their group plan provides.

Which of the following is NOT correct regarding why Health Care costs so much?

Victims of accidents and crimes require fewer emergency medical services than in the past.

Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. Which of the following riders should he consider?

Waiver of premium disability benefit

Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from

Worker's compensation

If you have a conversion term policy,

You can convert your term policy to a permanent policy.

If you have a loss due to a flood,

You must have already purchased special coverage if you live in an area that has frequent floods in order to be covered

If you have a multiyear level term policy,

Your premium will be the same for the duration of your policy.

Choose all of the items which you should take to your interview

copies of your resume reference list paper for notes

If you choose to wear your seatbelt, you are using

risk reduction

The best place to keep a household inventory is

safe deposit box