Question 1 (1 point) Saved Following the June 2017 homeowner's loss, the neighbor's insurance company demonstrated what principle? O a) Indemnity Ob) Insurable interest Od Adverse selection d) Subrogation Question 2 (1 point) Saved Which of the following is a risk reduction technique that Gary could use to help lower his insurance premiums? a) Increase the deductible on his auto insurance policy Ob) Use hold harmless agreements in leases Od Install a security system in his home Od) Cover employee theft losses out of business income Question 3 (1 point) Saved Which of the following is the best risk management technique for Tim's recent car purchase? a) Insurance for the property and liability loss exposures Oh Avoidance for the property loss exposure and retention for the liability loss exposure O Retention for the property loss exposure and transfer for the liability loss exposure d) Retention for the property loss exposure and reduction for the liability loss exposure Question 4 (1 point) Saved Which of the following is the best risk management technique for Martha's recent home purchase? O a Reduction for the property loss exposure and insurance for the liability loss exposure Ob) Retention for the property loss exposure and transfer for the liability loss exposure O Transfer for the property and liability loss exposures Od) Reduction for the property and liability loss exposures Question 5 (1 point) Saved Which of the following correctly describes the policy PRM wrote on Kim in April 2016? a) The policy never existed at all Ob) The policy can be cancelled by either Kim or PRM O The policy is not enforceable because Kim is a minor O d) The policy is valid if both parties fulfill the policy requirements Question 6 (1 point) Saved Which of the following risk exposures should Tim Wilson treat as a priority for insuring? a) Poor health b) Liability losses O d Unemployment Od Death Question 7 (1 point) Saved Which of the following is Gary Parker's biggest area of risk exposure? O a) Death Ob) Disability Od Retirement Od) Poor health Question 8 (1 point) Saved Which of the following loss exposures should most concern Martha? a) Property losses to her home Ob) Life insurance O c) Long-term care costs for her father Od Liability losses from her car, home and boat Question 9 (1 point) Saved For which coverage is Tim Wilson most likely to buy an amount of insurance based on the maximum possible loss from the risk exposure? a) Life insurance Ob) HO-2 property insurance O PAP coverage Od Disability income insurance Question 10 (1 point) Saved If Gary wants to add a $1 million umbrella policy, where would he look in the policies providing the primary coverage to make sure there is no coverage gap? al Declarations b) Insuring agreement O Exclusions Od Conditions Question 11 (1 point) Saved What was the insurance company's payout for Julie's hospital stay in February 2017 a) $7,000 Ob) $5,600 Od $5,200 Od) $5,120 Question 12 (1 point) Saved During Judy's November 2017 hospital stay, how much out-of-pocket expenses were incurred for that claim? a) $17,200 Ob) $4,800 Od $4,400 d) $3,720 Question 13 (1 point) Saved Which of the following claims would NOT be excluded under the Parkers' current medical insurance coverage? a) Eyeglasses for Julie Ob) Injuries Gary sustains during a trip to Italy Od John's cosmetic surgery after his auto accident d) Injuries related to a fall Judy has at work Question 14 (1 point) Saved What is the tax result of Martha's contributions to her Health Savings Account in the current year? O a) $2,400 itemized deduction Ob) $2,400 above-the-line deduction Od $2,900 itemized deduction Od) $2,900 above-the-line deduction Question 15 (1 point) Saved What is the tax result of Martha's distributions from her Health Savings Account in the current year? Oa) $0 Ob) $200 ordinary income Od $200 capital gain Od) $2,000 capital gain Question 16 (1 point) Saved Which of the following disability income policy provisions should be recommended to Judy based on her objectives? O a) Own occupation definition of disability Ob) Partial disability benefits with no elimination period O Residual disability benefits with a 90-day elimination period d) Any occupation definition of disability with a 1-year benefit period Question 17 1 point) Saved How much disability income did Sandy receive from the insurance company when she injured her hand, assuming that she was receiving a Social Security disability benefit of $400? benefit of $400 suming there from the O al $0 b) $1,500 Od $2,100 Od) $2,500 Question 18 (1 point) Saved Which of the following changes would help Gary lower his disability insurance premiums with the least effect on his coverage? a) Changing his definition of disability to an own occupation definition Ob) Changing his definition of disability to an any occupation definition Oc) Changing his benefit period to ten years O d) Changing his elimination period to 90 days Question 19 (1 point) Saved Which of the following disability income policies should be recommended to Tim? Oa Any occupation definition of disability with a guaranteed renewable provision Ob) Any occupation definition of disability with a noncancelable provision Od Own occupation definition of disability with a noncancelable provision Od Split definition of disability with a guaranteed renewable provision Question 20 (1 point) Saved Which of the following statements is correct concerning the tax treatment of Sandy's disability income insurance policy? a) The benefit is free of income taxation Ob) A portion of the benefit is taxable income Od The total premiums paid can be deducted for income tax purposes Od A portion of the premiums paid can be deducted for income tax purposes Question 1 (1 point) Saved Following the June 2017 homeowner's loss, the neighbor's insurance company demonstrated what principle? O a) Indemnity Ob) Insurable interest Od Adverse selection d) Subrogation Question 2 (1 point) Saved Which of the following is a risk reduction technique that Gary could use to help lower his insurance premiums? a) Increase the deductible on his auto insurance policy Ob) Use hold harmless agreements in leases Od Install a security system in his home Od) Cover employee theft losses out of business income Question 3 (1 point) Saved Which of the following is the best risk management technique for Tim's recent car purchase? a) Insurance for the property and liability loss exposures Oh Avoidance for the property loss exposure and retention for the liability loss exposure O Retention for the property loss exposure and transfer for the liability loss exposure d) Retention for the property loss exposure and reduction for the liability loss exposure Question 4 (1 point) Saved Which of the following is the best risk management technique for Martha's recent home purchase? O a Reduction for the property loss exposure and insurance for the liability loss exposure Ob) Retention for the property loss exposure and transfer for the liability loss exposure O Transfer for the property and liability loss exposures Od) Reduction for the property and liability loss exposures Question 5 (1 point) Saved Which of the following correctly describes the policy PRM wrote on Kim in April 2016? a) The policy never existed at all Ob) The policy can be cancelled by either Kim or PRM O The policy is not enforceable because Kim is a minor O d) The policy is valid if both parties fulfill the policy requirements Question 6 (1 point) Saved Which of the following risk exposures should Tim Wilson treat as a priority for insuring? a) Poor health b) Liability losses O d Unemployment Od Death Question 7 (1 point) Saved Which of the following is Gary Parker's biggest area of risk exposure? O a) Death Ob) Disability Od Retirement Od) Poor health Question 8 (1 point) Saved Which of the following loss exposures should most concern Martha? a) Property losses to her home Ob) Life insurance O c) Long-term care costs for her father Od Liability losses from her car, home and boat Question 9 (1 point) Saved For which coverage is Tim Wilson most likely to buy an amount of insurance based on the maximum possible loss from the risk exposure? a) Life insurance Ob) HO-2 property insurance O PAP coverage Od Disability income insurance Question 10 (1 point) Saved If Gary wants to add a $1 million umbrella policy, where would he look in the policies providing the primary coverage to make sure there is no coverage gap? al Declarations b) Insuring agreement O Exclusions Od Conditions Question 11 (1 point) Saved What was the insurance company's payout for Julie's hospital stay in February 2017 a) $7,000 Ob) $5,600 Od $5,200 Od) $5,120 Question 12 (1 point) Saved During Judy's November 2017 hospital stay, how much out-of-pocket expenses were incurred for that claim? a) $17,200 Ob) $4,800 Od $4,400 d) $3,720 Question 13 (1 point) Saved Which of the following claims would NOT be excluded under the Parkers' current medical insurance coverage? a) Eyeglasses for Julie Ob) Injuries Gary sustains during a trip to Italy Od John's cosmetic surgery after his auto accident d) Injuries related to a fall Judy has at work Question 14 (1 point) Saved What is the tax result of Martha's contributions to her Health Savings Account in the current year? O a) $2,400 itemized deduction Ob) $2,400 above-the-line deduction Od $2,900 itemized deduction Od) $2,900 above-the-line deduction Question 15 (1 point) Saved What is the tax result of Martha's distributions from her Health Savings Account in the current year? Oa) $0 Ob) $200 ordinary income Od $200 capital gain Od) $2,000 capital gain Question 16 (1 point) Saved Which of the following disability income policy provisions should be recommended to Judy based on her objectives? O a) Own occupation definition of disability Ob) Partial disability benefits with no elimination period O Residual disability benefits with a 90-day elimination period d) Any occupation definition of disability with a 1-year benefit period Question 17 1 point) Saved How much disability income did Sandy receive from the insurance company when she injured her hand, assuming that she was receiving a Social Security disability benefit of $400? benefit of $400 suming there from the O al $0 b) $1,500 Od $2,100 Od) $2,500 Question 18 (1 point) Saved Which of the following changes would help Gary lower his disability insurance premiums with the least effect on his coverage? a) Changing his definition of disability to an own occupation definition Ob) Changing his definition of disability to an any occupation definition Oc) Changing his benefit period to ten years O d) Changing his elimination period to 90 days Question 19 (1 point) Saved Which of the following disability income policies should be recommended to Tim? Oa Any occupation definition of disability with a guaranteed renewable provision Ob) Any occupation definition of disability with a noncancelable provision Od Own occupation definition of disability with a noncancelable provision Od Split definition of disability with a guaranteed renewable provision Question 20 (1 point) Saved Which of the following statements is correct concerning the tax treatment of Sandy's disability income insurance policy? a) The benefit is free of income taxation Ob) A portion of the benefit is taxable income Od The total premiums paid can be deducted for income tax purposes Od A portion of the premiums paid can be deducted for income tax purposes