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CPCU 556 Practice Questions Questions And Answers With Verified Solutions Already Passed!!!!
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CPCU 556 Practice Questions Questions And Answers With Verified Solutions Already Passed!!!!
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CPCU 556 Practice Questions QuestionsAnd Answers With Verified Solutions
Already Passed!!!!
Tom and Annie have been married for two years, and are considering starting a
family. They have decided that they should develop a financial plan. The first step
in the personal financial planning process is
Select one:
A. Establishing and prioritizing financial goals.
B. Developing a plan.
C. Analyzing the current situation.
D. Gathering information. - ANSWER✔✔ A. Establishing and prioritizing financial
goals.
Which one of the following statements about unemployment insurance is true?
Select one:
A. It is financed solely be FICA taxes paid by employed persons.
B. Benefits are limited and vary from state to state.
C. Its major drawback is that only slightly more than half the states have such
programs.
D. Benefits typically last for up to six years. - ANSWER✔✔ B. Benefits are limited
and vary from state to state.
Eric and Elizabeth are retirees who have been providing some financial support to
Elizabeth's disabled sister. They want to continue this support if they predecease
the sister. However, they are concerned that she might lose access to government
programs if they directly give her assets. Which one of the following is a method
of meeting their objective?
,Select one:
A. Request that their children be appointed her legal guardians.
B. Transfer property to a trust.
C. Leave her assets in their wills.
D. Make sure she immediately applies for all potential government benefits. -
ANSWER✔✔ B. Transfer property to a trust.
Personal financial planning must include Social Security, which includes income
benefits to older persons. Recipients are not able to receive their full monthly
benefit until they reach full retirement age. By 2027, the full retirement age will
be
Select one:
A. Sixty-seven.
B. Sixty-eight.
C. Sixty-nine.
D. Seventy. - ANSWER✔✔ A. Sixty-seven.
Bruce and Sue are trying to decide how much additional life insurance is needed if
he should die. Currently, Sue does not work outside the home.
They have come up with the following needs of Sue and the family as a result of
Bruce's death:
NEEDAMOUNT Final expenses$15,000 Debt elimination$340,000 Family living
expenses$400,000 Special needs$25,000 Sue's retirement needs$350,000
Bruce and Sue currently have $10,000 in bank accounts. Bruce has $150,000 of
employer provided life insurance, $300,000 of individually purchased life
, insurance, and a $50,000 death benefit in a pension plan. Sue is the beneficiary of
all of these. The estimated Social Security survivors benefits upon Bruce's death
are $230,000.
Using the needs approach, how much additional life insurance should Bruce
purchase?
Select one:
A. $40,000
B. $200,000
C. $390,000
D. $400,000 - ANSWER✔✔ C. $390,000
Which one of the following statements is correct regarding how the single
premium for a substandard life annuity tends to compare to the premium for an
otherwise identical standard life annuity?
Select one:
A. The premium for the substandard life annuity is the same.
B. The premium for the substandard life annuity is slightly greater
C. The premium for the substandard life annuity is less.
D. The premium for the substandard life annuity is significantly greater. -
ANSWER✔✔ C. The premium for the substandard life annuity is less.
Paula is a successful business woman. She is married with three grown children.
Paula has always been very grateful for her college experience, and feels that it is
responsible for much of her success. She has made a pledge of $50,000 to the
college when she dies. She would like to fund this pledge through a life insurance
policy. Which one of the following types of life insurance policy should she
purchase to guarantee that the separate funds are available to satisfy this pledge?
Select one:
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