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1) If you purchase automobile insurance coverage with policy limits of$100,000/$300,000/$20,000 , this mean thatA) A maximum of $100,000 would be paid to the injured in yourautomobile and $300,000 to the injured in the other car.(B) $100,000is the limit on damages per individual with a $300,000 overall limit peraccident(C) $20,000 is the limit on damage per individual with$100,000 limit per accident and an overall limit on all accidents of$300,000(D) $100,000 is the limit on damages per individual with amaximum of $300,000 being paid to the driver of the other car inproperty damages.

2) The waiting period for health care insurance is the period betweenA) When you apply for membership and when you are admitted into athe plan (B) When you pay your first premium and your plan coverage

begins (C) When you enter an insurance plan and when the costs ofa pre-existing illness are cover. (D) When you incur a medicalexpense and you receive reimbursement for the expense

3) The coordination of benefits clause in disability policies typicallyA) Sets a maximum on the disability benefits you may receive from allsources (B) Sets a minimum on the disability benefits you mayreceive from all sources (C) Attempts to time the benefits so that theyare received when needed (D) Coordinates benefits from health care

and disability income insurance so as to provide you with morecomplete protection against illness and injury

4)There are many reasons why people buy life insurance. Of theseA) The best reason is the protection provided your beneficiaries (B)The best reason is the forced savings generated by term lifeinsurance (C) The best reason is the interest return on ordinary life(D) None have proven important for most families

5) The easiest method for estimating your life insurance needs is the:

A) Multiple of salary approach (B) Needs approach (C) life cycleapproach (D) Permanent income approach

6)The face amount for a particular life insurance policy is equal toA) The amount you would receive if you cancel the insurance policy(B) Sum of all past premium(C ) Sum of all past premium minusdividends (D) Amount of death protection exclusive of policy loans

8/7/2019 PF4

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8/7/2019 PF4

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14)IRA funds may be withdrawn without penalty atA) age 59-1/2 (B) age 64-1/2 (C)age 69-1/2 (D) any age