Multiple choice

1. What type of life insurance would most likely be used to cover the outstanding balance of a home

mortgage?

A. Universal life

End of exam

B. Straight life

C. Endowment

D. Decreasing term insurance

2. Terry has medical coverage under Medicare. From this fact alone, you can infer it's likely that Terry is

A. poor.

B. age 65 or over.

C. in a long-term care facility.

D. disabled.

3. Tom is a consumer with a lot of credit card debt who wants to get a clean start and get rid of all of his

debts. If he qualifies, the best chapter in bankruptcy for Tom is Chapter

A. 7.

B. 13.

C. 11.

D. 12.

4. Victor applies for life insurance. On the application, when asked if he had ever been diagnosed with

cancer, he falsely said no. Later Victor died, and the insurance company found out about the previous

diagnosis of cancer and refused to pay. What were the most likely grounds?

A. Failure to pay premiums

B. Estoppel

C. Misrepresentation

D. Concealment