A homeowners' policy will typically pay up to $500 per plant that is damaged by a covered peril. This is an example of: an aggregate dollar limit an open perils dollar limit C. a specific dollar limit a mixed dollar limit none of the above e. You purchase an annuity for which you will make one payment of $15,000 on your 50 birthday. The annuity will start paying you $400 a month on your 67" birthday until you die. What type of annuity did you buy? a. Single-premium deferred annuity b. Flexible-premium deferred annuity Level-premium deferred annuity d. Single-premium immediate annuity Level-premium immediate annuity 6. In the personal financial planning pyramid that I showed in class, which of the following is at the base of the pyramid? Wealth accumulation Risk Management Wealth Distribution Savings None of the above is at the base of the financial planning pyramid. Your business owns a building with a replacement cost of $200,000 and is insured. The insurance policy covering this building has an 80% coinsurance clause written into the contract. The amount of insurance (policy limit) you purchased on this building is $120,000. If there were a $120,000 loss to the building due to a covered peril, what would be the amount of reimbursement you would receive from the insurance company due to this loss? (Assume that no deductible applies.) a. $ 90,000 b. $ 96,000 c. $120,000 SO From an insurer's viewpoint, all the following are purposes of deductibles, excepti To eliminate small claims To put a cap on the maximum amount the insurer will have to pay out To reduce moral and morale hazard problems. d. To increase the number of potential policyholders All of the above are purposes of deductibles from an insurer's viewpoint. All the following are used by insurers to limit the amount of recovery amount payable to policyholders) except: Other insurance clauses Deductibles Coinsurance Dollar limits All the above are used by insurers to limit the amount of recovery Which one of the following is TRUE about renewable term insurance? a. You have to take another physical when you renew. b. Your premiums can go up because of your health when you renew. Your premiums can go up because of your age when you renew. Your premiums do not go up when you renew. None of the above are TRUE. Characteristics of whole life insurance are: a. For death protection and savings; temporary For death protection only permanent For savings only, permanent d. For death protection and savings, permanent e. None of the above are characteristic of whole life insurance. 12. Kendra has a $500 straight deductible on her auto insurance policy and has the following losses during the policy year: $200, S600, $800, $200, and $1100. What is total amount the insurer will pay Kendra? $1,900 b. $1,000 $2,900 d. $500 None of the above. 13. Which one of the following is TRUE about Social Security disability income? To qualify, the least strict definition of disability must be met. b. There is no elimination period. C. Benefits depend on previous earnings history. You can collect even if you haven't worked in the last 10 years. Which one of the following is the least strict definition of disability? Own occupation Any occupation for which reasonably suited c. The Social Security definition d. Confined to your home definition e. Not able to drive Which one of the following will pay for your long-term care in a nursing home if you qualify? a. Medicaid b. Medicare Social security d. Your health insurance 16. Limp Williams has a $1000 aggregate deductible on his health insurance policy and has claims in the following order during the policy year. Assume there is no coinsurance or copays. $200, 3600, $800, $200, and $1100. What is total amount his insurer will pay for his claims? $2,900 $1,000 $1,900 $2,100 None of the above. 17. Which type of term life insurance is most commonly used by people with mortgages? increasing term level term decreasing term straight term whole term 18. Which one of the following most accurately describes the taxability of life insurance? a. death benefits are income-tax-free to the beneficiary b. annual increases in cash value are tax deductible death benefits are always estate-tax-free premiums are tax deductible none of the above are true 19. Frankie handles financial and marketing matters at the XKG Corporation. Johnny is the plant manager who keeps the XKG production lines running efficiently. If Frankie arranges a key person life insurance policy to protect against the death of Johnny, which of the following normally applies to this type of policy? a. Johnny should be the owner and the beneficiary. XKG should be the owner and Frankie the beneficiary. XKG should be the owner and the beneficiary. XKG should be the owner and Johnny should be the beneficiary. None of the above normally apply in this case 20. With which type of life insurance are you allowed to skip a premium payment and still have the policy remain in force? a level term life b. universal life C. whole life d. decreasing term life None of these types of life insurance allow you to skip a premium payment and still have the policy remain in force. 21. Which one of the following statements is TRUE about Medicare? Part A covers inpatient hospital care and a premium is required. Part B covers doctor bills and no premium is required. Part D covers prescription drugs and a premium is required. d. Part A covers doctor bills and no premium is required None of the above are TRUE Which one of the following is TRUE? Only you (not your employer) pay your Social Security tax. Both your earned and unearned income is taxed for Social Security There is a cap on the amount of your earned income that is taxed for Medicare. There is a cap on the amount of your earned income that is taxed for Social Security None of the above are TRUE. e. 23. Which one of the following is TRUE about High-Deductible Health Plans (HDHP) with Health Savings Accounts (HSAs)? Contributions are not tax deductible Unused funds cannot be carried by employee into the next job Unused funds can be carried by employee into retirement Only your employer can contribute to your HSA. e. None of the above are TRUE. 24. Social Security pays for all the following if you qualify EXCEPT: Retirement income b. Medical expenses when over age 65 c. Disability income at any age Income to your qualifying survivors if you die 25. Megan bought a new walk-in freezer that cost $10,000 for her ice cream shop when she opened for business three years ago. Recently, lightning struck a nearby power line and the resulting power surge completely ruined the freezer, which is covered by her property insurance. Her insurer's claims adjuster informs Megan that the freezer can be replaced for $12,000, freezers have a 15-year depreciable life, and her policy pays actual cash value. Assume there is no deductible. Megan should receive: a. $12,000 b. $10,000 c. $9,600 $8,600 26. Which one of the following is TRUE about the concept of "coinsurance": For property insurance, the main purpose of coinsurance is to get policyholders to share costs with insurers after the deductible is reached. For health insurance, the main purpose of coinsurance is punish policyholders for under insuring For health insurance, coinsurance is used as an incentive for policyholders to use in-network providers. d. None of the above are TRUE. Which one of the following statements is TRUE? a. You qualify for Medicaid according to your age. b. You qualify for Medicare according to your income. C. Medicare is administered by State governments. Medicaid funding is from both Federal and State tax revenues. None of the above are TRUE. d. 28. Angela chose to join a health plan with low cost sharing requirements if she goes to physicians that are part of the insurer's network. She can choose a primary care physician that is out of the network. Angela has chosen to join: a. An HMO b. APPO A POS d. A traditional indemnity plan e. None of the above. 29. Curtis purchased a health insurance policy. The policy has a calendar-year deductible of $500, 80-20 coinsurance, and a $5,000 cap. Curtis was hospitalized with a covered illness on January 23" The hospitalization was his first claim for the calendar year. His medical expenses were $20,500. How much of this amount will the insurer pay, and how much will Curtis be required to pay? The insurer will pay $15,500 and Curtis will pay $5000. The insurer will pay $20,000 and Curtis will pay $500 The insurer will pay $16,000 and Curtis will pay $4,500 d. The insurer will pay $5000 and Curtis will pay $15,500. e. None of the above 30. According to the Guide to Cyber Insurance document, cyber insurance applications are complicated and require detailed input from various professionals that work within the organization. Which professional in an organization usually handles the cyber insurance placement (purchase) for the company? a. Privacy professional b. Risk manager c. Security professional d. Insurance broker e. Weinermobile Consulting Service 31. According to the Guide to Cyber Insurance document, who published the first standard cyber form for insurers to use instead of proprietary coverage forms that most cyber insurers still use? a. NAIC b. ACV ISO KBB Sir Porkiford Regulatory Agency 32. According to the video you watched, which insurance process does the insurtech company Tractable predict it will be able to automate about one third of using artificial intelligence? Sales Underwriting Claims Actuarial Catastrophic injuries to Dirt Snookie Jones 33. According to the Oscar Health video, what makes the American healthcare system inherently inflationary? Everybody is part of a cost-plus system. There are too many uninsured people. Society is aging. d. Lifestyles are unhealthy. There are too many Carp-like clumsy people