 |
| 1 | |
The premium is the payment(s) that is made to pay for cost of insurance policy. |
| | A) | True |
| | B) | False |
|
|
|
| 2 | |
Term insurance would pay face amount of policy in case of death of insured. |
| | A) | True |
| | B) | False |
|
|
|
| 3 | |
Premiums for straight-life are higher than for term insurance. |
| | A) | True |
| | B) | False |
|
|
|
| 4 | |
The premium for fire insurance is found by the insured value divided by 100 times the table rate. |
| | A) | True |
| | B) | False |
|
|
|
| 5 | |
The actual amount of insurance carried is called the face value. |
| | A) | True |
| | B) | False |
|
|
|
| 6 | |
All states have the same compulsory insurance. |
| | A) | True |
| | B) | False |
|
|
|
| 7 | |
Lowering deductibles for collision will result in increased premiums. |
| | A) | True |
| | B) | False |
|
|
|
| 8 | |
In terms of premium cost, the most expensive type of insurance is: |
| | A) | Term |
| | B) | Straight-life |
| | C) | 20-payment life |
| | D) | 20-year endowment |
| | E) | None of the above |
|
|
|
| 9 | |
An auto insurance premium may be partially based on: |
| | A) | Attitude of driver |
| | B) | Expected life of car |
| | C) | Make of car |
| | D) | Number of years one expects to drive a car |
| | E) | None of the above |
|
|
|
| 10 | |
Abby Kaminsky, age 32, has decided to take out a limited payment life policy. She chose this since she expects her income to decline in future years. Abby has decided to take out a twenty-year pay life policy with a coverage amount of $200,000. By using the tables in the handbook, her annual premium will be: |
| | A) | $1,158 |
| | B) | $2,316 |
| | C) | $2,136 |
| | D) | $1,518 |
| | E) | None of the above |
|
|
|
| 11 | |
Matt Miller, age 28, took out $100,000 of straight-life insurance. His annual premium was $418.20. At the end of 20 years, the cash value of his policy is: (Use the tables in the handbook) |
| | A) | $13,250 |
| | B) | $26,000 |
| | C) | $26,500 |
| | D) | $30,000 |
| | E) | None of the above |
|
|
|
| 12 | |
Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy, resulting from failure to correct fire hazard. The cost of the policy to Bill was: |
| | A) | $739.20 |
| | B) | $793.20 |
| | C) | $591.36 |
| | D) | $616.00 |
| | E) | None of the above |
|
|
.