LOMA 281 Module 2 exam with 100% correct answers
Which |type |of |whole |life |insurance |policy |will |best |be |able |to |give |Arabella |lifetime |protection
|without |straining |her |retirement |income?
Single-premium |whole |life |policy
Limited-payment |whole |life |policy
Continuous-premium |whole |life |policy |- |correct |answer |-B
Financial |needs |life |insurance |can |meet |- |correct |answer |-- |paying |household |expenses
- |covering |outstanding |debts
- |Paying |outstanding |medical, |hospital, |and |funeral |expenses, |
- |providing |financial |support |for |the |family
- |funding |a |child's |education
Term |Life |Insurance |- |correct |answer |-Life |insurance |that |provides |a |death |benefit |only |if |the
|insured |dies |during |the |period |specified |in |the |policy.
level |term |life |insurance |- |correct |answer |-Term |life |insurance |that |provides |a |policy |benefit |that
|remains |the |same |over |the |term |of |the |policy.
Decreasing |Term |Life |Insurance |- |correct |answer |-Term |life |insurance |that |provides |a |policy |benefit
|that |decreases |in |amount |over |the |term |of |coverage
Mortgage |Insurance |- |correct |answer |-A |plan |of |decreasing |term |insurance |designed |to |provide |a
|benefit |amount |that |corresponds |to |the |decreasing |amount |owed |on |a |mortgage |loan.
When |Michael |bought |a |house, |he |obtained |a |mortgage |loan |from |the |Archway |Bank. |He |also
|bought |a |mortgage |insurance |policy |from |Able |Life.
,Is |Archway |Bank |a |party |to |Michael's |mortgage |insurance |contract |with |Able |Life?
a. |yes
b. |no |- |correct |answer |-B.
Who |can |Michael |name |as |the |beneficiary |of |his |mortgage |insurance |policy?
a. |His |Wife |Only
b. |Archway |Bank |Only
c. |His |Wife, |Archway |Bank, |or |Someone |Else |- |correct |answer |-C.
If |Michael |names |his |wife |as |the |policy |beneficiary, |does |she |have |to |use |the |policy |proceeds |to
|repay |the |mortgage |loan?
a. |yes
b. |no |- |correct |answer |-B.
Credit |Life |Insurance |- |correct |answer |-A |type |of |term |life |insurance |designed |to |pay |the |balance
|due |on |a |loan |if |the |borrower |dies |before |the |loan |is |repaid.
Family |Income |Coverage |- |correct |answer |-A |plan |of |decreasing |term |life |insurance |that |provides |a
|stated |monthly |income |benefit |amount |if |the |insured |dies |during |the |term |of |coverage.
Increasing |Term |Life |Insurance |- |correct |answer |-Term |life |insurance |that |provides |a |death |benefit
|that |starts |at |one |amount |and |increases |by |some |specified |amount |or |percentage |at |stated
|intervals |over |the |policy |term.
Decide |whether |the |statements |below |describe |increasing |term |insurance, |level |term |insurance, |or
|decreasing |term |insurance.
,A |5-year |term |life |insurance |policy |that |offers |a |death |benefit |of |$50,000 |for |the |first |year |of |the
|policy |term, |$40,000 |for |the |second |year, |and |so |on. |The |benefit |for |the |fifth |year |is |$10,000.
a. |Increasing |Term |Insurance
b. |Level |Term |Insurance
c. |Decreasing |Term |Insurance |- |correct |answer |-C.
A |5-year |term |life |insurance |policy |that |provides |a |$100,000 |death |benefit |if |the |insured |dies |at
|any |time |during |the |5-year |policy |term.
a. |increasing |term |insurance
b. |level |term |insurance
c. |decreasing |term |insurance |- |correct |answer |-B.
A |5-year |term |life |insurance |policy |that |pays |a |$100,000 |benefit |during |the |policy's |first |year, |a
|$105,000 |benefit |during |the |second |year, |and |so |on. |The |benefit |during |the |fifth |year |is |$120,000.
Increasing |term |insurance
Level |term |insurance
Decreasing |term |insurance
a. |increasing |term |insurance
b. |level |term |insurance
c. |decreasing |term |insurance |- |correct |answer |-A.
Return |of |Premium |(ROP) |- |correct |answer |-A |form |of |term |life |insurance |that |provides |a |death
|benefit |if |the |insured |dies |during |the |term |of |coverage |and |promises |a |return |of |premiums |if |the
|insured |does |not |die |during |the |term |of |coverage.
Renewable |Term |Insurance |- |correct |answer |-Term |life |insurance |that |gives |the |policyowner |the
|option |to |continue |the |policy's |coverage |at |the |end |of |the |specified |term |without |presenting
|evidence |of |insurability.
, Evidence |of |insurability |- |correct |answer |-Proof |that |a |given |person |is |an |insurable |risk.
Suppose |Carter |buys |a |renewable |term |insurance |policy. |Do |you |think |he |can |renew |the |policy |as
|many |times |as |he |wants?
a. |Yes
b. |No
c. |Can't |tell. |Need |more |information. |- |correct |answer |-B.
Suppose |Blythe |renews |her |$100,000 |20-year |renewable |policy |at |the |end |of |the |policy |term. |Do
|you |think |the |amount |of |coverage |is |automatically |cut |in |half |to |$50,000?
a. |Yes
b. |No
c. |Can't |tell. |Need |more |information. |- |correct |answer |-B.
Attained |Age |- |correct |answer |-The |age |an |insured |has |reached |(attained) |on |a |specified |date.
Convertible |Term |Insurance |- |correct |answer |-Term |life |insurance |that |gives |the |policyowner |the
|right |to |convert |the |term |policy |to |a |cash |value |life |insurance |policy |without |providing |evidence |of
|insurability.
Conversion |Period |- |correct |answer |-The |specified |period |of |time |following |policy |issue |during
|which |the |owner |of |a |convertible |term |life |insurance |policy |can |convert |the |coverage |to |cash |value
|life |insurance.
Assume |Blythe |Owens |purchased |a |convertible |term |insurance |policy |instead |of |a |renewable |term
|policy. |During |the |conversion |period, |Blythe's |health |declined |to |the |point |where |she |would |no
|longer |be |considered |insurable. |Can |Blythe |convert |her |term |policy |to |a |cash |value |policy?
a. |Yes
b. |No
c. |Can't |tell. |Need |more |information. |- |correct |answer |-A.
Which |type |of |whole |life |insurance |policy |will |best |be |able |to |give |Arabella |lifetime |protection
|without |straining |her |retirement |income?
Single-premium |whole |life |policy
Limited-payment |whole |life |policy
Continuous-premium |whole |life |policy |- |correct |answer |-B
Financial |needs |life |insurance |can |meet |- |correct |answer |-- |paying |household |expenses
- |covering |outstanding |debts
- |Paying |outstanding |medical, |hospital, |and |funeral |expenses, |
- |providing |financial |support |for |the |family
- |funding |a |child's |education
Term |Life |Insurance |- |correct |answer |-Life |insurance |that |provides |a |death |benefit |only |if |the
|insured |dies |during |the |period |specified |in |the |policy.
level |term |life |insurance |- |correct |answer |-Term |life |insurance |that |provides |a |policy |benefit |that
|remains |the |same |over |the |term |of |the |policy.
Decreasing |Term |Life |Insurance |- |correct |answer |-Term |life |insurance |that |provides |a |policy |benefit
|that |decreases |in |amount |over |the |term |of |coverage
Mortgage |Insurance |- |correct |answer |-A |plan |of |decreasing |term |insurance |designed |to |provide |a
|benefit |amount |that |corresponds |to |the |decreasing |amount |owed |on |a |mortgage |loan.
When |Michael |bought |a |house, |he |obtained |a |mortgage |loan |from |the |Archway |Bank. |He |also
|bought |a |mortgage |insurance |policy |from |Able |Life.
,Is |Archway |Bank |a |party |to |Michael's |mortgage |insurance |contract |with |Able |Life?
a. |yes
b. |no |- |correct |answer |-B.
Who |can |Michael |name |as |the |beneficiary |of |his |mortgage |insurance |policy?
a. |His |Wife |Only
b. |Archway |Bank |Only
c. |His |Wife, |Archway |Bank, |or |Someone |Else |- |correct |answer |-C.
If |Michael |names |his |wife |as |the |policy |beneficiary, |does |she |have |to |use |the |policy |proceeds |to
|repay |the |mortgage |loan?
a. |yes
b. |no |- |correct |answer |-B.
Credit |Life |Insurance |- |correct |answer |-A |type |of |term |life |insurance |designed |to |pay |the |balance
|due |on |a |loan |if |the |borrower |dies |before |the |loan |is |repaid.
Family |Income |Coverage |- |correct |answer |-A |plan |of |decreasing |term |life |insurance |that |provides |a
|stated |monthly |income |benefit |amount |if |the |insured |dies |during |the |term |of |coverage.
Increasing |Term |Life |Insurance |- |correct |answer |-Term |life |insurance |that |provides |a |death |benefit
|that |starts |at |one |amount |and |increases |by |some |specified |amount |or |percentage |at |stated
|intervals |over |the |policy |term.
Decide |whether |the |statements |below |describe |increasing |term |insurance, |level |term |insurance, |or
|decreasing |term |insurance.
,A |5-year |term |life |insurance |policy |that |offers |a |death |benefit |of |$50,000 |for |the |first |year |of |the
|policy |term, |$40,000 |for |the |second |year, |and |so |on. |The |benefit |for |the |fifth |year |is |$10,000.
a. |Increasing |Term |Insurance
b. |Level |Term |Insurance
c. |Decreasing |Term |Insurance |- |correct |answer |-C.
A |5-year |term |life |insurance |policy |that |provides |a |$100,000 |death |benefit |if |the |insured |dies |at
|any |time |during |the |5-year |policy |term.
a. |increasing |term |insurance
b. |level |term |insurance
c. |decreasing |term |insurance |- |correct |answer |-B.
A |5-year |term |life |insurance |policy |that |pays |a |$100,000 |benefit |during |the |policy's |first |year, |a
|$105,000 |benefit |during |the |second |year, |and |so |on. |The |benefit |during |the |fifth |year |is |$120,000.
Increasing |term |insurance
Level |term |insurance
Decreasing |term |insurance
a. |increasing |term |insurance
b. |level |term |insurance
c. |decreasing |term |insurance |- |correct |answer |-A.
Return |of |Premium |(ROP) |- |correct |answer |-A |form |of |term |life |insurance |that |provides |a |death
|benefit |if |the |insured |dies |during |the |term |of |coverage |and |promises |a |return |of |premiums |if |the
|insured |does |not |die |during |the |term |of |coverage.
Renewable |Term |Insurance |- |correct |answer |-Term |life |insurance |that |gives |the |policyowner |the
|option |to |continue |the |policy's |coverage |at |the |end |of |the |specified |term |without |presenting
|evidence |of |insurability.
, Evidence |of |insurability |- |correct |answer |-Proof |that |a |given |person |is |an |insurable |risk.
Suppose |Carter |buys |a |renewable |term |insurance |policy. |Do |you |think |he |can |renew |the |policy |as
|many |times |as |he |wants?
a. |Yes
b. |No
c. |Can't |tell. |Need |more |information. |- |correct |answer |-B.
Suppose |Blythe |renews |her |$100,000 |20-year |renewable |policy |at |the |end |of |the |policy |term. |Do
|you |think |the |amount |of |coverage |is |automatically |cut |in |half |to |$50,000?
a. |Yes
b. |No
c. |Can't |tell. |Need |more |information. |- |correct |answer |-B.
Attained |Age |- |correct |answer |-The |age |an |insured |has |reached |(attained) |on |a |specified |date.
Convertible |Term |Insurance |- |correct |answer |-Term |life |insurance |that |gives |the |policyowner |the
|right |to |convert |the |term |policy |to |a |cash |value |life |insurance |policy |without |providing |evidence |of
|insurability.
Conversion |Period |- |correct |answer |-The |specified |period |of |time |following |policy |issue |during
|which |the |owner |of |a |convertible |term |life |insurance |policy |can |convert |the |coverage |to |cash |value
|life |insurance.
Assume |Blythe |Owens |purchased |a |convertible |term |insurance |policy |instead |of |a |renewable |term
|policy. |During |the |conversion |period, |Blythe's |health |declined |to |the |point |where |she |would |no
|longer |be |considered |insurable. |Can |Blythe |convert |her |term |policy |to |a |cash |value |policy?
a. |Yes
b. |No
c. |Can't |tell. |Need |more |information. |- |correct |answer |-A.
