Which of the following is true of long-term disability insurance?

• It comes into effect after the insured has reachedage 65.
• It becomes effective after you cannot work for six to 12 months.
• The cost of the premium decreases with the extension of the coverage period.
• It will replace a portion of a person's salary for three to 12 months after an injury.

Which of the following statements is true of gifts?

• It is the recipient's obligation to file a tax return if the gift is monetary.
• It is mandatory for the donor to file a gift tax return if the amount paid to the recipient is more than $15,000.
• Gifts are an involuntary transfer of funds from the donor's assets after their death.
• Donors are obligated to pay taxes only if they gift money to charities.

Which of the following results from filing frequent claims against an automobile insurance policy?

• The policyholder begins topay a higher premium.
• The policyholder's credit score increases.
• The policyholder sees a decrease in theirdeductible amount.
• The policyholder's driving record shows markedimprovement.

In which of the following scenarios is the individual paying an insurance copayment?

• Dina pays $30 for every doctor's appointment and her insurance company pays the rest.
• Ralph has to pay $6,000 before his insurance will begin to cover the costs of damage to his property.
• Claudia's employer pays $4,000 of her insurance costs and she pays $1,000.
• Eddie pays $400 a month for his insurance coverage.

Jesse obtained COBRA health insurance coverage following a recent job loss.

Which of the following benefits is Jesse most likely to receive?

• His previous health coverage is now extended for a limited period of time.
• His insurance policy pays him a monthly incentive that helps him pay his out-of-pocket medical expenses.
• His health insurance premium is paid by the insurance company.
• His insurance payouts will increase if he faces a divorce or death of a spouse or child.

Which of the following is a feature of renter's insurance coverage?

• It provides coverage to restore the residence of the policyholder if any peril occurs.
• It provides coverage of any liability that arises if the policyholder's rental property is damaged.
• It reimburses the policyholder for loss of personal income associated with filing an insurance claim.
• It is an expensive policy because it charges renters a high insurance premium.

In which of the following medical conditions does a living will dictate thetype ofmedical treatment to be administered to a patient?

• A patient is suffering from the flu.
• A patient needs emergency CPR to survive.
• A patient is surviving on a life support system.
• A patient is suffering from a chronic heart condition.

Which of the following statements correctly describesprobate?

• Probate refers to the disposal of disclaimed property as per the order of the executor of a will.
• Probate refers to the process that involves obtaining a deceased person's taxes from their legal heirs.
• Probaterefers to the process of hiring an attorney to draft a will for the deceased individual's property.
• Probate refers to the execution of a will under court supervision.

Which of the following statements highlights the fraudulent nature of a pyramid scheme?

• The scheme phases outnew recruits from thepyramid by withholding vital information they need to sell theirfinancial products.
• Any investment return from the scheme depends solely on an individual's capacity to recruit new individuals to the scheme.
• The scheme ensures low risk but high returns to its investors by investing their money in profitable shares.
• Membership feesare invested in shares of stock from different companies but only part of the interest earnedis returned to investors.