瑞达Rejda保险教材英文练习题11x

PrinciplesofRiskManagementandInsurance,11e(Rejda)
Chapter11LifeInsurance
Whichofthefollowingtypesoffamiliesislikelytohavetheleastneedforalargeamountoflifeinsurance
ablendedfamily
atraditionalfamily
asinglepersonfamily
asandwichedfamilyAnswer:C
QuestionStatus:PreviousEdition
2)Thehumanlifevalueisdefinedasthe
prentvalueofadeceadbreadwinner'sfuturegrossincome.
futurevalueofadeceadbreadwinner'spastearnings.
prentvalueofthefamily'sshareofadeceadbreadwinner'sfutureearnings.
futurevalueofthefamily'sshareofadeceadbreadwinner'sfutureearnings.Answer:CQuestionStatus:PreviousEdition
3)Allofthefollowinginformationisneededtocalculateaperson'shumanlifevalueEXCEPT
theperson'saverageannualearningsoverhisorherproductivelifetime.
theperson'stimatedannualSocialSecuritybenefitsafterretirement.
theperson'scostoflf-maintenance.
thenumberofyearsfromtheperson'sprentagetotheexpectedretirementage.Answer:BQuestionStatus:PreviousEdition
Tocalculateahumanlifevalue,itisnecessarytodeductcertaincostsfromaperson'saverageannualearnings.Thecostsinclude
funeralcosts.
incometaxes.
investmentincome.
pensionbenefitsafterretirement.Answer:B
QuestionStatus:PreviousEdition
AllofthefollowingaredefectswhichlimittheufulnessofthehumanlifevalueapproachindeterminingthecorrectamountoflifeinsurancetopurchaEXCEPT
Theeffectsofinflationareignored.
Othersourcesofincomeforsurvivorsareignored.
Earningsareassumedtoremainconstant.
Earningsduringtheindividual'sproductivelifetimeareignored.Answer:DQuestionStatus:PreviousEdition
Whichofthefollowingstatementsabouttheneedsapproachforestimatingtheamountoflifeinsurancetopurchais(are)true
I.Itinvolvesananalysisofvariousfamilyneedswhichmustbemetifafamilybreadwinnerdies.
II.Itsuisappropriateonlyifapersoncurrentlyhasnolifeinsuranceprotection.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:AQuestionStatus:PreviousEdition
7)ThepurpoofanestateclearancefundistopayallofthefollowingEXCEPT
burialexpens.
estateadministrationexpens.
educationcosts.
installmentdebts.Answer:CQuestionStatus:PreviousEdition
Whatisthelengthofthereadjustmentperiodwhichisconsideredwhentheneedsapproachisudtodeterminetheamountoflifeinsurancetoown
3to6months
1to2years
untiltheyoungestchildreachesage18
untilthesurvivingspoureachesage65Answer:BQuestionStatus:PreviousEdition
Undertheneedsapproach,whenisthedependencyperiodofasurvivingspouassumedto
end
1or2yearsafterthebreadwinner'sdeath
whentheyoungestchildreachesage18
whenthesurvivingspoureachesage65
whenthesurvivingspoudiesAnswer:BQuestionStatus:PreviousEdition
TheperiodduringwhichasurvivingspouisineligibleforSocialSecuritybenefitsisreferredtoasthe
emergencyperiod.
readjustmentperiod.
dependencyperiod.
blackoutperiod.Answer:DQuestionStatus:PreviousEdition
Whichofthefollowingstatementsaboutthecapitalretentionapproachfordetermininglifeinsuranceneedsis(are)true
I.Itassumesthatlifeinsuranceproceedswillbeliquidatedtoprovideincometosurvivors.
II.Itrequiresthepreparationofapersonalbalancesheet.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:BQuestionStatus:PreviousEdition
Whenthecapitalretentionapproachisudtodeterminehowmuchlifeinsurancetopurcha,allofthefollowingaresubtractedfromtotalaststocalculatethecapitalavailabletoproduce
incomeEXCEPT
investmentsinstocksandbonds.
non-incomeproducingcapitalsuchasautosandthevalueofthehome.
theamountofmoneyneededtopayoffthemortgage.
autoloansandcreditcarddebt.Answer:A
QuestionStatus:Revid
DisadvantagesofthecapitalretentionapproachincludewhichofthefollowingI.Astsareoftenliquidatedtooquickly.
II.Itunderestimatestheamountoflifeinsuranceneeded.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:DQuestionStatus:PreviousEdition
TomandNancyBoyleprovidefinancialsupportfortheirtwochildren.Inaddition,theyprovidefinancialsupportforTom'sagedfatherandNancy'sagedmother.TheBoylefamilycanbedescribedasa
blendedfamily.
single-parentfamily.
two-incomeearnerfamily.
sandwichedfamily.Answer:DQuestionStatus:PreviousEdition
Julian,age45,wouldliketodeterminehowmuchlifeinsurancetopurchausingthehumanlifevalueapproach.Heassumeshisaverageannualearningsoverthenext20yearswillbe$40,000.Ofthisamount,$20,000isavailableannuallyforthesupportofhisfamily.Julianwillgeneratethisincomefor20moreyearsandhebelievesthat5percentistheappropriateinterest(discount)rate.Theprentvalueofonedollarpayablefor20yearsatadiscountrateof5percentis$.WhatisJulian'shumanlifevalue
$184,600
$249,200
$360,800
$400,000
Answer:B
QuestionStatus:PreviousEdition
JessicaisanagentforLMNLifeInsuranceCompany.ShemetwithBrad,whowasinterestedinpurchasinglifeinsurance.Jessicaexplainedthevarioususoflifeinsurance,includingincomeforBrad'swifeduringthe1-or2-yearperiodfollowingBrad'sdeath.Thisperiodisknownasthe
dependencyperiod.
estateclearanceperiod.
blackoutperiod.
readjustmentperiod.Answer:D
QuestionStatus:PreviousEdition
Sarahisusingtheneedsapproachtodeterminehowmuchlifeinsurancetobuy.Hercashneedsare$30,000;herincomeneedsare$140,000;andspecialneedsare$100,000.Sarahhasthefollowingasts:$20,000inbankaccounts,$30,000inretirementplans,and$40,000ininvestmentaccounts.
Sarahownsnoindividuallifeinsurance.Sheiscoveredbya$50,000grouplifeinsurancepolicythroughheremployer.Badonthisinformation,howmuchadditionallifeinsuranceshouldSarahpurcha
$80,000
$130,000
$150,000
$160,000
Answer:B
QuestionStatus:PreviousEdition
Richardisusingthecapitalretentionapproachtodeterminehowmuchlifeinsurancetopurcha.Richardwouldliketoprovide$35,000peryeartohisfamily,forever,ifhedies.Theaststhathehastodaywillprovide$25,000inannualincomewithouttheliquidationoftheasts.Iflifeinsuranceproceedscanbeinvestedtoearna5percentannualreturn,howmuchlifeinsuranceshouldRichardpurchatofundtheadditionalincomeneededtomeetthe$35,000annualincomegoal
$10,000
$100,000
$150,000
$200,000
Answer:D
QuestionStatus:PreviousEdition
Billisattemptingtodeterminehowmuchlifeinsurancetopurcha.Hehastwodependentchildrenandhiswifedoesnotworkoutsideofthehome.AnadvisorsuggestedthatBillshouldconsiderSocialSecuritybenefitswhendoinghislifeinsuranceplanning.OneconcerninthisregardistheperiodafterSocialSecuritybenefitstoawidowterminateuntiltheyresumeagain.Thisperiodiscalledthe
blackoutperiod.
dependencyperiod.
emergencyperiod.
readjustmentperiod.Answer:A
QuestionStatus:PreviousEdition
Whenusingtheneedsapproach,veral"specialneeds"shouldbeconsidered.Onespecialneedismoneytocoverunexpectedevents,suchasmajorcarrepairs,dentalbills,orhomerepairs.Moneytasideforthispurpoiscalleda(n)
estateclearancefund.
emergencyfund.
readjustmentperiodfund.
mortgageredemptionfund.Answer:B
QuestionStatus:PreviousEdition
Mostfamilyheadsneedsubstantialamountsoflifeinsurance.However,withlimitedincome,moneyspentonlifeinsurancereducestheamountofdiscretionaryincomeavailableforotherhigh-priorityneeds.Whataninsuredpersongivesupwhenheorshepurchaslifeinsuranceinsteadof
usingthepremiumdollarsforotherpurposiscalledthe
estimatedcostoflifeinsurance.
netcostoflifeinsurance.
real(inflation-adjusted)costoflifeinsurance.
opportunitycostofbuyinglifeinsurance.Answer:D
QuestionStatus:PreviousEdition
Whichofthefollowingstatementsaboutyearlyrenewableterminsuranceis(are)true
Ionly
IIonly
bothIandII
neitherInorIIAnswer:DQuestionStatus:PreviousEdition
Whathappenstothepremiumsforyearlyrenewableterminsuranceasaninsuredgetsolder
Theyincreaatanincreasingrate.
Theyincreaatadecreasingrate.
Theydecreaataconstantrate.
Theyremainlevel.Answer:AQuestionStatus:PreviousEdition
AllofthefollowingstatementsaboutterminsurancearetrueEXCEPT
Theinsuranceprovidesprotectionforaspecifiedperiodoftime.
Mostpoliciescanberenewedforadditionalperiodswithoutevidenceofinsurability.
Mostpoliciescanbeconvertedtoapermanentlifeinsurancepolicy.
Mostpolicieshaveacashvaluethatisrefundedwhencoverageceas.Answer:DQuestionStatus:PreviousEdition
AllofthefollowingstatementsabouttheconversionofatermpolicyaretrueEXCEPT
A)Underanattainedageconversion,thepremiumisbadontheinsured'sattainedageatthetimeofconversion.
Underanoriginalageconversion,thepolicyownermustpayafinancialadjustmentinadditiontothepremiumforthenewpolicy.