Question 1

Calculate cost and refund (use table in text if needed):

Accepted Answer

A. $224; B. $156; C. $600; D. $200

Question 2

Calculate Joe Wheel's auto premium:

Accepted Answer

$768

Question 3

Calculate Joe Wheel's auto premium.

Accepted Answer

The answer of Calculate Joe Wheel's auto premium.
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Question 4

The face amount is the amount stated in the policy.

Accepted Answer

The face amount is the amount of coverage stated in the policy.

Question 5

Term insurance builds up no cash value.

Accepted Answer

Term insurance is designed to provide coverage for a specific period of time, typically ranging from one to 30 years. It is a type of insurance that does not accumulate any cash value, unlike permanent life insurance policies such as whole life, universal life, and variable life insurance.

Question 6

A 09-year endowment does not build up any cash value by the end of year 5.

Accepted Answer

An endowment policy typically builds up cash value over time, including by the end of year 5, as it combines life insurance with a savings component.

Question 7

Complete the cost of the premium for fire insurance:

Accepted Answer

The answer of Complete the cost of the premium for...

Question 8

Nonforfeiture values could result in the insured being paid the cash value of the policy and the policy being terminated.

Accepted Answer

Nonforfeiture values are the cash values that the insured can receive if they decide to surrender the policy instead of continuing with the premiums. This means the policy would be terminated and the insured would be paid the cash value.

Question 9

Twenty-payment life requires premiums for 20 years although the insured is protected till death.

Accepted Answer

As per the definition of twenty-payment life, the insured is required to pay premiums for 20 years but is protected until death. Therefore, the statement is true.

Question 10

Term insurance would pay the face amount of the policy in case of the death of the insured.

Accepted Answer

Term insurance is a type of life insurance policy that pays the face amount of the policy to the beneficiary in case the insured dies during the term of the policy.

Question 11

The beneficiary pays the insurance to the insured.

Accepted Answer

The insured pays for the insurance policy, not the beneficiary. The beneficiary receives the benefits of the policy if a covered event occurs.

Question 12

The premium is the payment(s) that is made to pay for the cost of an insurance policy.

Accepted Answer

The premium is the amount of money that policyholders pay to insurance companies to maintain their insurance policy. It is usually paid in regular intervals, such as monthly or annually, and is based on various factors such as coverage amount, deductible, and risk factors associated with the policyholder.

Question 13

All premiums for universal life remain the same.

Accepted Answer

Premiums for universal life insurance can change over time depending on factors such as the policy's cash value and interest rates.

Question 14

The one receiving the insurance coverage is the insured.

Accepted Answer

The insured is the person who receives insurance coverage, while the insurer is the company that provides the coverage.

Question 15

Calculate the annual total auto premium from the following. There is compulsory insurance.

Accepted Answer

The answer of Calculate the annual total auto premium from...

Question 16

Universal life provides whole life protection.

Accepted Answer

The answer of Universal life provides whole life protection....

Question 17

Buying flight insurance at an airport is an example of straight-life insurance.

Accepted Answer

Buying flight insurance at an airport is an example of term life insurance, not straight-life insurance. Term life insurance provides coverage for a specific period of time, while straight-life insurance provides coverage for the entire lifetime of the insured.

Question 18

Calculate Joe Brake's auto premium:

Accepted Answer

The answer of Calculate Joe Brake's auto premium:
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Question 19

Premiums for straight-life insurance are higher than premiums for term insurance.

Accepted Answer

Straight-life insurance provides coverage for the entire life of the insured and typically has higher premiums than term insurance, which only provides coverage for a specified period of time.

Question 20

Permanent protection is provided by term insurance.

Accepted Answer

The answer of Permanent protection is provided by term insurance....

Quiz 9: Risk Management