1. Sue is the beneficiary of a life insurance policy with a death benefit of $300,000. She elects to allow the insurance company to retain the principle amount of the death benefit and collect periodic interest payments from the insurance company. Which death benefit settlement option did she elect?

   		Fixed-Period Option
   		Interest-Only Option
   		Cash Payment
   		Life Income Option

QUESTION 4

1. What are some of the costs associated with the premature death of an individual?

   		The individuals lost income
   		Funeral expenses
   		Costs related to grief and mourning
   		All of the above

QUESTION 5

1. Ordinary whole life insurance does not accumulate a cash value but is often much less expensive than term insurance.

   True

   False

QUESTION 6

1. Minimum retirement age for U.S. social security is 65.

   True

   False

QUESTION 7

1. A defined benefit plan places the risk of insufficient retirement savings on the employee.

   True

   False

QUESTION 8

1. The minimum withdrawal age (without penalties) for an IRA or 401(k) is between 59 and 60.

   True

   False

QUESTION 9

1. Which social insurance benefits are at least partially funded through an employer-based payroll tax?

   		Social Security Retirement
   		Social Security Disability
   		Unemployment Insurance
   		All of the Above

QUESTION 10

1. Jim is a legal clerk for the JBW Law Firm. He is provided with a defined benefit retirement plan. The plan has a contribution percentage of 2.4%. The retirement benefit is based on the average salary from the employees last three years. Jim retires after 35 years at the law firm with salaries in his last three years of $44,000, $47,000, and $51,000. How much will his annual benefit be once he retires?

   		Between $32,000 and $34,000
   		Between $35,000 and $37,000
   		Between $39,000 and $41,000
   		Not enough information to calculate the benefit

QUESTION 11

1. The risk of premature death, the risk of poor health (disability), and the risk of unemployment are ALL associated with lost working income.

   True

   False

QUESTION 12

1. Longevity risk can refer to either (i) dying while we have unpaid financial obligations or (ii) living beyond the savings we built for retirement.

   True

   False

QUESTION 13

1. Tangible personal property can be described as:

   		Land, buildings, and other structures which are permanently attached
   		Ideas or business property with no physical form
   		Movable business property with a physical form
   		Property losses that are unforeseen and occur as a result of chance

QUESTION 14

1. An example of "risk arising from others" is a fire in my building caused by a faulty electrical outlet which causes my store to close for 3 months.

   True

   False

QUESTION 15

1. Which category do special damages fall into in a lawsuit for negligence?

   		General damages
   		Plaintiff damages
   		Compensatory damages
   		Punitive damages

QUESTION 16

1. Punitive damages punish a defendant for intentional damage to property or reputation.

   True

   False

QUESTION 17

1. In a negligence lawsuit, the defendant may sue the plaintiff for compensatory or punitive damages.

   True

   False

QUESTION 18

1. Which of the following is NOT an element of negligence?

   		A duty to not cause harm
   		Damage to property or injury to person(s)
   		Breach of a duty not to cause harm
   		Purposefully ignoring a duty not to cause harm