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1) If you purchase automobile insurance coverage with policy limits of $100,000/$300,000/$20,000 , this

mean that A) A maximum of $100,000 would be paid to the injured in your automobile and $300,000 to the injured in the other car.(B) $100,000 is the limit on damages per individual with a $300,000 overall limit per accident(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 a maximum of $300,000 being paid to the driver of the other car in property damages. 2) The waiting period for health care insurance is the period between A) When you apply for membership and when you are admitted into a the plan (B) When you pay your first premium and your plan coverage begins (C) When you enter an insurance plan and when the costs of a pre-existing illness are cover. (D) When you incur a medical expense and you receive reimbursement for the expense 3) The coordination of benefits clause in disability policies typically A) Sets a maximum on the disability benefits you may receive from all sources (B) Sets a minimum on the disability benefits you may receive from all sources (C) Attempts to time the benefits so that they are received when needed (D) Coordinates benefits from health care and disability income insurance so as to provide you with more complete protection against illness and injury 4)There are many reasons why people buy life insurance. Of these A) The best reason is the protection provided your beneficiaries (B) The best reason is the forced savings generated by term life insurance (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 cycle approach (D) Permanent income approach 6)The face amount for a particular life insurance policy is equal to A) The amount you would receive if you cancel the insurance policy (B) Sum of all past premium(C ) Sum of all past premium minus dividends (D) Amount of death protection exclusive of policy loans

(D) A policy that provides for inter-generational transfers 10) Variable life differs from universal life in that A) Variable life has an investment components and universal life does not(B) Universal life has an investment components and Variable life does not(C) Variable life cash value depend on an underlying portfolio of financial investment (D) Variable life provides a guaranteed investment return 11) Of those assets distributed at death. (D) Vest by age 65 . protecting husband. which one of the following must pass through probate ? A) Assets distributed through the will(B) Assets distributed through a living trust.7)The “Beneficiaries” name on an insurance policy are those who A) Own the policy (B) Buy the policy (C) Issue the policy (D) Are protected by the policy 8)Term insurance differ from whole life insurance in that term A) Is more expensive per dollar of death protection (B) Provides protection only during the term of the policy and not for your whole life(C)Is designed for individuals while whole life is for families (D) Is offered only through employer sponsored insurance policy 9) The best description of “universal life” insurance is that it is: A) a combination of term insurance and tax-deferred savings. wife. and dependents.(B) Insurance for a large number(universe) of people at reduced rates (C) Total family coverage. (C) Assets distributed through a contractual transfer (D) All of the assets described above must pass through probate 12)The most common form of shared ownership used by marriage partners is A)Tenancy in common (B) joint venture (C) joint tenancy (D) fee simple 13) ERISA requires that employee contributions to qualified pension plan A) Vest by the fifth year under cliff vesting (B) Vest by the tenth year under graded vesting (C) Vest immediately.

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