EXAMINATION NUMBER - 08187800 - Managing Insurance Needs

1. You have a parent who may need nursing care at some time in the future. You know the HEALTH INSURANCE POLICY doesn’t cover such expenses and that MEDICARE COVERAGE is limited. You should consider A. DISABILITY INSURANCE . B. extended HMO. C. group senior HEALTH CARE COVERAGE . D. LONG-TERM CARE INSURANCE . 2. You’re the sole source of income for your family and your job requires you to be in good physical condition.You’re concerned that an injury could prevent you from performing your work.You should consider A. LONG-TERM CARE INSURANCE . B. extended HMO. C. DISABILITY INCOME insurance. D. MEDICARE . 3. You’re reviewing your homeowner’s INSURANCE POLICY to identify perils. Which one of the following might be listed in that section of the policy? A. Liability exposure B. Insurable interest C. Indemnity principle D. Fire and smoke 4. You’ve elected to purchase a participating policy and will therefore have the potential to receive A. CASH VALUE . B. extended benefits. C. group rates. D. policy dividends. 5. The settlement option chosen by most beneficiaries is A. lump sum. B. interest only. C. fixed amount. D. fixed time. 6. The least expensive form of PERMANENT INSURANCE protection is A. term. B. straight life. C. limited payment. D. universal. 7. Commonly, surgical expenses are covered on the basis of A. actual surgical expense. B. listed benefit schedules. C. specific percentage of surgical expense. D. average national cost of the surgery. 8. Even though your INSURANCE COMPANY issued you a policy after reviewing your application for INSURANCE , it can still withdraw the policy for certain reasons if the _______ clause is in the policy. A. incontestability B. underwriting C. loss PREVENTION D. risk assumption 9. The best way to determine if you need LIFE INSURANCE and how much you need is to use the_______ approach. A. multiple earnings B. needs C. future value D. financial security 10. After the INSURANCE COMPANY reimbursed you for the loss related to property you insured, it made a request from the negligent party to recover its payment. It has the right to do this under the policy because of the right of A. subrogation. B. coinsurance. C. indemnity. D. negligent action 11. To obtain insurance for any property, whether a home, an AUTOMOBILE , or other property, you must have a(n) A. broker. B. premium. C. insurable interest. D. liability. 12. In the United States, the right to continue a HEALTH INSURANCE POLICY is provided by an act known as A. UCR. B. SMI. C. HMO. D. COBRA. 13. Government-sponsored programs can complement PRIVATE HEALTH INSURANCE programs. If you’re INJURED ON THE JOB , you would be eligible for which government mandated program? A. Social Security MEDICARE B. Workers’ Compensation Insurance C. Supplementary MEDICAL INSURANCE D. BLUE CROSS /Blue Shield Worker Plan 14. A liability suit could result when A. lightning strikes your home. B. your son falls down the stairs of your home. C. your auto is stolen. D. a delivery person slips on the steps of your home. 15. Collision protection pays for damage to A. non-auto property of insured. B. auto of insured. C. all autos in accident. D. auto of other party in accident. 16. Auto insurance is needed primarily because of A. potential damage to auto. B. potential liability claims. C. lender’s requirements. D. state law. 17. Universal LIFE INSURANCE is designed to offer advantages to the policyholder beyond life insurance “protection.” It also provides A. very cheap rates and cancellation privileges. B. short-term coverage and low rates. C. investment or savings and tax advantages. D. whole life and low rates. 18. If you want to be able to decide how the savings component of your WHOLE LIFE INSURANCE policy is invested, you should elect A. straight LIFE INSURANCE . . B. continuous premium coverage. C. group LIFE INSURANCE D. variable LIFE INSURANCE . 19. You have a very old car and you know that you need collision insurance and liability coverage.You don’t want to insure your car for any other damage. Therefore, you wouldn’t elect to take out _______ coverage. A. UNINSURED MOTORIST B. comprehensive C. medical payments D. bodily injury 20. You have homeowner’s insurance and auto insurance, but due to your high net worth you’re very worried about liability beyond the amounts covered in those policies.You should explore A. an umbrella PERSONAL LIABILITY POLICY . B. an endorsement of loss policy. C. supplemental liability to the two policies. D. professional LIABILITY COVERAGE .