1. Which of the following statements about life insurance cash values is (are) true? I. Cash values are a result of the level premium method of purchasing life insurance. II. The cash value of a policy must always exceed the policy's legal reserve. 
I only
II only
both I and II
neither I nor II


Question 2.2. The human life value is defined as the 
present value of the family's share of a deceased breadwinner's future earnings.
present value of a deceased breadwinner's future gross income.
future value of a deceased breadwinner's past earnings.
future value of the family's share of a deceased breadwinner's future earnings.


Question 3.3. The purpose of an estate clearance fund is to pay all of the following EXCEPT 
estate administration expenses.
education costs.
installment debts.
burial expenses.


Question 4.4. Tracy had continuous group health insurance coverage at her previous employer for 6 years. Tracy decided to change jobs. Under federal law, if Tracy changes jobs, the new employer or group health plan must give her credit for previous and continuous health insurance coverage. This characteristic is called 
portability.
convertibility.
vesting.
renewability. 



Question 5.5. Under the Health Insurance Portability and Accountability Act, what is the maximum length of a preexisting conditions exclusion if an employee enrolls when initially eligible? (Points : 1)
60 days
2 years
6 months
1 year


Question 6.6. Which of the following statements is true regarding the results of studies by LIMRA and New York Life Insurance Company on the adequacy of life insurance owned by households in the United States?
I. The average household is adequately insured against the risk of premature death. 
II. The average household is significantly underinsured against the risk of premature death. 
I only
II only
both I and II
neither I nor II


Question 7.7. All of the following statements about individual disability income policies are true EXCEPT 
Most disability income insurance policies contain an elimination period of 15 or fewer days.
In order to encourage rehabilitation, benefits may be continued during periods of vocational training.
Premiums are often waived while a person is disabled but must be resumed if the insured recovers.
At the time of purchase, the insured can choose the length of the benefit period from among several available options.


Question 8.8. Under one health care reform proposal, a government entity would be created that would compete with private insurance plans. This alternative is called the 
public option.
individual health care mandate.
health insurance exchange option.
premium subsidy option.


Question 9.9. Doris started a business 2 years ago. The business has been successful, and Doris is thinking about starting to offer some employee benefits for her workers. She plans to offer a group term life insurance benefit. All of the following are usual eligibility requirements for participation in a group life insurance plan EXCEPT 
apply for insurance during the eligibility period.
satisfy a 2-year probationary period.
be actively at work when insurance becomes effective.
full-time employment.


Question 10.10. Ann is considering the purchase of a life insurance policy with these characteristics: flexible premium payments, the insurance and savings components are separate, the interest rate credited to the savings is tied to a market interest rate but a minimum rate is guaranteed, and a monthly administrative fee is charged. Ann is considering buying (Points : 1)
current assumption whole life.
universal life insurance.
whole life insurance.
variable life insurance.