Wise Practice Test (Insurance)

Front

A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?

Back

"I think I need a personal property floater."

Front

A person buys a flat screen, plasma, theater-like television. The person has homeowner's insurance. Why would it be appropriate to add a personal property floater to that insurance?

Back

To cover the cost of replacement should the television get damaged or stolen.

Front

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive: A. one-fifth of the $20,000 face value. B. $20,000 less the premiums paid. C. a calculated amount of money which includes the premiums paid as well as the interest on that money. D. a calculated amount of money that must be converted to a term life insurance policy.

Back

a calculated amount of money which includes the premiums paid as well as the interest on that money.

Front

The only type of life insurance that does not develop a cash value is:

Back

Term life insurance

Front

A person buys a homeowner's insurance policy with a $250 deductible, which means the person will

Back

have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.

Front

The purpose of Insurance is NOT to: A. Diversify an investment portfolio, B. Share risk with other policy holders and the insurance company, C. Protect assets, D. Protect against potential losses

Back

Diversify an investment portfolio

Front

Sally took out a $50,000 life insurance policy. The $50,000 amount of coverage is called the:

Back

Death benefit or face value

Front

Lucy has no insurance. The situation(s) should she consider insuring against first are: Death so her financial obligations are paid, Losses resulting from an illness, accident, or disability, Property losses and auto accidents, Auto collision, and burglary

Back

Losses resulting from an illness, accident, or disability

Front

When a self-employed person decides to purchase disability insurance it is generally to

Back

protect against the financial effects of not being able to work.

Front

Mr. Akon's wife died. The money he received as the beneficiary on her life insurance is called the:

Back

Death benefit or face value