Personal Finace

The life insurance policy that clearly separates the protection and savings elements is [whole life | universal life].

Universal Life

[Medicare | Workers' compensation] pays for medical expenses that are the result of on-the-job injuries and illnesses.

Worker's Compensation

Your $10,000 stamp collection would be best protected under [your HO policy | a personal property floater].

a personal property floater

When there is a co-insurance or participation clause in a health insurance policy, the amount the insurance will pay is computed [before | after] the deductible is paid.

after?

Most commonly, the deductible in a health insurance policy is on [an annual | a per incident] basis.

an annual

The ["own occupation" | "any occupation"] definition of disability is more restrictive.

any occ

If a large wild animal damages your car, payment will come from your [collision | comprehensive] protection.

comprehensive

Your health insurance stipulates that you will pay the first $500 of your health care expenses for the year. This is an example of a [deductible | co-payment].

deductible

Disability income benefits are taxable when the policy premiums were paid by the [employer | employee].

employee?

Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [good | bad] idea.

good

Surgical expense insurance will pay for cosmetic surgery [if so desired by the insured | if deemed medically necessary].

if deemed medically necessary

Decreasing the amount of deductibles will [increase | decrease] your insurance premiums.

increase

The Principle of [Indemnity | Peril] states that the insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss.

indemnity

Uninsured motorist insurance is relatively [expensive | inexpensive].

inexpensive

The amount of health insurance reimbursement actually paid may be reduced by [internal limits | co-payment caps].

internal limits?

Your house has a replacement value of $120,000. Your HO policy has an 80% co-insurance clause. In order to receive full compensation if your house is totally destroyed, you must carry insurance for [$96,000 | $120,000].

$120,000

The advisable dollar coverage for any one auto accident is at least [$100,000 | $300,000].

$300,000

With traditional whole life policies sold by an agent, sales commissions and marketing expenses account for up to [25% | 150%] of the first year's premium.

150%

Insurance is a tool that can lessen [economic | accident] risk.

Economic

Workers Compensation would make payments to an injured worker [if he had been hurt on the job | only if he could prove negligence on the part of his employer].

If they had been hurt on the job

If a loss is certain to occur, there is [a | no] risk.

No

Group insurance is most likely to be [term | whole life].

Term

Medicare would pay [the entire | part of the] hospital bill for a covered person.

The entire

Traditional indemnity policies reimburse the insured based on the [amount charged | usual, customary, and reasonable charges] for the medical services received.

Usual, custamary, and resonable charges

A [viatical settlement | guaranteed purchase option] is when an insured sells an interest in the life insurance policy to an investor, who then becomes the policy's beneficiary.

Viatical Settlement

The beneficiary [will | will not] have to pay income taxes on the proceeds from a life insurance policy.

Will Not

A coordination of benefits provision in a health care policy would [aid | prohibit] collecting multiple payments for health care.

prohibit

Disability insurance is designed to [replace some of your income | pay medical bills] when you are disabled.

replace some of your income

Actual cash value (ACV) is calculated by subtracting depreciation from the [purchase price | replacement cost] of an item.

replacement cost

You would be most likely to assume the risk of a [small | large] potential loss.

small

Bill was the at-fault party when you and he collided. Your insurance company has paid for the damages to your car. Now, it intends to recover this money from Bill. This is the right of [subrogation | indemnification].

subrogation

A personal liability umbrella liability policy is designed to [replace | supplement] HO and car liability coverage.

supplement

If your insurance policy promises to pay death benefits only if you die during a specified time, you have [term | whole] life insurance.

term

You own your house. The amount of insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].

the amount of insurance on your home

The [policy owner | insurance company] makes the investment decisions with universal life insurance.

Insurance Company

Sally drove Jessie's car to the mall and was involved in an accident that was her fault. The primary auto insurance that will cover this accident is [Sally's | Jessie's].

Jessie's

In order to predict accurately the number of losses that will occur in a given time, insurance companies must study [large | small] numbers of cases.

Large

An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

Loss prevention

Using the needs approach, we look at the survivors' needs if the income producer dies [tomorrow | before his life expectancy].

Tommorow

An insured can borrow from the [cash | face] value of her life insurance policy.

Cash

[Comprehensive | Named Peril] policy covers all perils unless they are specifically excluded.

Comprehensive

[Credit life | Group] insurance is one of the most expensive forms of life insurance.

Credit Life

The premium on your term insurance will [increase | stay the same] with each renewal.

Increase

The most accurate way to determine how much life insurance you need is to use the [multiple-of-earnings | needs analysis] method.

Needs Analysis

[Negligence | Indemnity] is the failure to act in a reasonable manner or take necessary steps to protect others from harm.

Negligence

The [policy owner | insurance company] makes the investment decisions with variable life insurance.

Policy Owner

Credit life insurance is generally considered to be a [good | poor] life insurance buy.

Poor

An HO-2 policy will protect your property from losses due to [all perils except those listed | listed perils only].

listed perils only

The longer the elimination or waiting period in your disability income policy, the [higher | lower] the premiums.

lower

[Medicare | Medicaid] makes health care payments available for anyone over age 65.

medicare

One complaint about HMOs in the past, as compared to traditional indemnity plans, is that [the cost was expensive | members couldn't always choose their physicians].

members can't always choose their physicians

If you are sued, the liability portion of your property insurance [must | has no obligation to] defend you.

must

"Long Term Care" is a term used to describe [nursing home | extended hospital].

nursing home

If neither the primary nor secondary beneficiary survives the insured, the life insurance proceeds will be [kept by the insurance company | paid to the estate of the insured and distributed by the probate court].

paid to the estate of the insured and distributed by the probate court

Negligent acts must be [intentional | unintentional] in order to be insured.

unintentional

The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

will