1.It is expected that the financial planning process gives a more accurate estimate of financial needs and results in somewhat lower values than the ones obtained by the present value of the lost income stream. This expectation is based on the assumption that:

Select one:

a. the lost income approach underestimates the needs by assuming that the dead person incurs some expenses for a particular period after death.

b. the financial planning process overestimates the needs by assuming that the dead person stops consuming.

c. the financial planning process underestimates the needs by assuming that the dead person incurs some expenses for a particular period after death.

d. the lost income approach overestimates the needs by assuming that the dead person incurs some expenses for a particular period after death.

e. the lost income approach overestimates the needs by assuming that the dead person stops consuming.

2.Under this part, the Social Security Administration and the Centers for Medicare & Medicaid Services work together to provide persons with limited income and resources with extra help paying for their prescription drugs. Identify this Medicare coverage.

Select one:

a. Medicare Part E

b. Medicare Part A

c. Medicare Part D

d. Medicare Part C

e. Medicare Part B

3.The maximum family benefit is the maximum monthly amount that can be paid on a worker\'s earnings record. When the family reaches its maximum family benefit, the:

Select one:

a. worker\'s benefit is reduced.

b. benefit of the dependent is stopped.

c. worker\'s benefit is not reduced.

d. benefit of the survivor is stopped.

e. worker\'s benefit is stopped.

4.Assume that you have limits of 15/25/15 ($15,000/$25,000/$15,000), the minimum required in the state where your car is garaged. If you are driving in a state that requires 25/50/20 ($25,000/$50,000/$20,000) and are involved in an accident, your insurer will interpret your policy as if it had the higher limits. Thus, even though you have to meet only the requirements where you live, your policy will provide the limits you need in any state or province in which you may be driving. Identify the provision in your automobile insurance policy that makes this possible.

Select one:

a. Indemnification

b. Gentrification

c. Out-of-state

d. Stacking

e. Redlining

5.Which of the following statements is true of a variable life insurance policy?

Select one:

a. It pays the face amount if policy is in force when death occurs.

b. The interest rates of the policy are based on bonds only (not stocks) and can be higher than the minimum guaranteed.

c. This “mutual fund” policy is intended to keep death benefits apace with inflation.

d. It provides protection for a specific period.

e. The policy stays in force as long as the premiums are paid.