Individual Insurance Planning Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What is an annuity?

Question 2 2. Managed care plans include:

Question 3 3. Which of the following statements about homeowner's insurance coverage is FALSE?

Question 4 4. Billy received a claim against his health insurance in the mail in the amount of $4,910. This is the first claim against his health insurance for the current calendar year. His deductible is $3,000, his coinsurance is 20%, and his premium is $200. What will Billy end up paying on this claim?

Question 5 5. Raymond pays for the first $2,600 of covered services himself (out-of-pocket) under his health insurance plan. This $2,600 is a known as a _____.

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Question 6 6. Mr. Murray just graduated from college and landed his dream job. On his first day, he attends orientation, where the human resource representative explains retirement options. Which annuity option should Mr. Murray choose if he has a high risk tolerance?

Question 7 7. Tony is selecting a disability insurance policy. He has the option of having his benefits start 30 days, 60 days, or 120 days after the onset of a disability. Why would Tony choose 120 days?

Question 8 8. What is the difference between term and whole life insurance?

Question 9 9. Choose which statement is true about long-term disability policies?

Question 10 10. Mrs. Sanders is one year from retirement and interested in investing in an annuity. Which annuity fits her needs best and why?

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Question 11 11. How does renter's insurance differ from homeowner's insurance?

Question 12 12. Which type of managed care plan is a combination of a PPO and HMO?

Question 13 13. Becky is having foot surgery and lives in a townhouse with four flights of steps. She would like to stay in a long-term care facility for the first couple of weeks following her surgery so as not to be a bother to her family. However, when she inquires about her plans to her health insurance company she is told that the long-term care facility will not be covered for her in this type of situation. This is known as a policy _____.

Question 14 14. Which of the following situations would justify the purchase of a personal umbrella liability policy?

Question 15 15. A young, female logger and middle age, male sales representative with a history of allergies and high cholesterol are both applying for life insurance policies. Whose policy will be more expensive and why?

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Question 16 16. Which of the following options is true about Social Security disability?

Question 17 17. Which type of managed care plan lets you choose the doctor you want to go see without another doctor's referral?

Question 18 18. Which type of managed care plan needs your PCP's approval to go see another specialist?

Question 19 19. A product that protects from financial loss in the event of a death is _____, and its proceeds are paid out _____.

Question 20 20. Ivan forgets to treat his icy sidewalk before leaving his home for the day. While delivering a package to the house, the mail carrier slips and falls, injuring her back. Ivan's icy walkway is an example of _____.

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Question 21 21. How are the terms toileting and continence related?

Question 22 22. People with a HDHP may be eligible to save their money, pre-tax, into a:

Question 23 23. Which policy, term or whole, is best for the following situation: A young married couple just purchased a home with a 30-year mortgage, and they only want to protect against financial loss in the event of one of their deaths.

Question 24 24. Which answer describes an equity-indexed annuity?

Question 25 25. What is the correlation between risk and return?

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Question 26 26. Sharon's expecting her first child and meets with her employer's human resources department to discuss maternity leave. The representative explains that Sharon's eligible to utilize paid time off, after which the employer-sponsored disability policy will pay benefits. What type of disability policy is the representative referencing?

Question 27 27. Patty failed to renew her automobile insurance. She is involved in a car accident that results in damage to her vehicle and another driver's vehicle. Additionally, the other driver is severely injured. Patty is cited by the police. Which of the following scenarios is LIKELY to occur as a result of the accident?

Question 28 28. Which of the following is NOT an example of what a 10-year term life insurance policy can be used for?

Question 29 29. Susie selects a health insurance plan through her employer where she makes a $200 payment in full each month for her health care benefits to remain completely active. This payment is known as:

Question 30 30. A financial agreement for the payment of health-related costs that is made between an individual or a group of individuals and an insurance company is known as _____.

Individual Insurance Planning Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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