C.26 Insurance policy and company selection Flashcards
(14 cards)
When selecting a life insurance policy, which factor should be considered first?
A) The policy’s premium cost
B) The policy’s death benefit
C) The policy’s cash value accumulation
D) The insurer’s financial strength rating
The insurer’s financial strength rating. When selecting a life insurance policy, it is important to consider the financial strength of the insurer to ensure they will be able to pay claims in the future.
Which of the following factors should be considered when selecting a health insurance policy?
A) The policy’s premium cost
B) The policy’s deductible and copay amounts
C) The policy’s network of healthcare providers
D) All of the above
All of the above. When selecting a health insurance policy, it is important to consider factors such as premium cost, deductible and copay amounts, and the network of healthcare providers.
A client is looking for a disability insurance policy that will provide coverage until age 65. Which type of disability insurance policy should be recommended?
A) Short-term disability insurance
B) Long-term disability insurance
C) Individual disability insurance
D) Group disability insurance
Long-term disability insurance. Long-term disability insurance policies typically provide coverage until age 65 or retirement age.
Which of the following is an advantage of purchasing an umbrella insurance policy?
A) It provides additional liability coverage
B) It is less expensive than other types of insurance
C) It provides coverage for damages to personal property
D) It is not necessary if you have other types of insurance
It provides additional liability coverage. An umbrella insurance policy provides additional liability coverage above and beyond what is provided by other insurance policies.
A client is concerned about the financial impact of a serious illness. Which type of insurance policy should be recommended?
A) Long-term care insurance
B) Disability insurance
C) Critical illness insurance
D) Life insurance
Critical illness insurance. Critical illness insurance is designed to provide a lump sum benefit to help cover the expenses associated with a critical illness.
A client is looking for a policy that provides coverage for both death and savings. Which type of policy should be recommended?
A) Term life insurance
B) Whole life insurance
C) Universal life insurance
D) Variable life insurance
Whole life insurance. Whole life insurance provides coverage for both death and savings in the form of a cash value component.
A client is interested in purchasing a policy that will provide coverage for a specific period of time. Which type of life insurance policy should be recommended?
A) Term life insurance
B) Whole life insurance
C) Universal life insurance
D) Variable life insurance
Term life insurance. Term life insurance provides coverage for a specific period of time, typically 10, 20, or 30 years.
A client is concerned about the financial impact of a disability that could prevent them from working. Which type of disability insurance policy should be recommended?
A) Short-term disability insurance
B) Long-term disability insurance
C) Individual disability insurance
D) Group disability insurance
Individual disability insurance. Individual disability insurance policies are designed to provide coverage in the event that an individual is unable to work due to a disability.
A client is looking for a policy that will provide coverage for their business in the event of a lawsuit. Which type of insurance policy should be recommended?
A) Liability insurance
B) Property insurance
C) Business interruption insurance
D) Workers’ compensation insurance
Liability insurance. Liability insurance provides coverage in the event that a business is sued for damages caused by its products, services or operations.
A client is interested in purchasing a policy that will provide coverage for damage to their business property caused by a natural disaster. Which type of insurance policy should be recommended?
A) Liability insurance
B) Property insurance
C) Business interruption insurance
D) Workers’ compensation insurance
Property insurance. Property insurance provides coverage for damage to a business’s property caused by a natural disaster, such as a hurricane or earthquake.
A client is concerned about the financial impact of a fire that could damage their business property. Which type of insurance policy should be recommended?
A) Liability insurance
B) Property insurance
C) Business interruption insurance
D) Workers’ compensation insurance
Property insurance. Property insurance provides coverage for damage to a business’s property caused by a fire.
A client is interested in purchasing a policy that will provide coverage for loss of income due to a disaster. Which type of insurance policy should be recommended?
A) Liability insurance
B) Property insurance
C) Business interruption insurance
D) Workers’ compensation insurance
Business interruption insurance. Business interruption insurance provides coverage for loss of income due to a disaster, such as a natural disaster or fire.
A client is interested in purchasing a policy that will provide coverage for damage to their business property caused by theft. Which type of insurance policy should be recommended?
A) Liability insurance
B) Property insurance
C) Business interruption insurance
D) Workers’ compensation insurance
Property insurance. Property insurance provides coverage for damage to a business’s property caused by theft.
A client is concerned about the financial impact of a product liability claim. Which type of insurance policy should be recommended?
A) Liability insurance
B) Property insurance
C) Business interruption insurance
D) Workers’ compensation insurance
Liability insurance. Liability insurance provides coverage in the event that a business is sued for damages caused by its products, services, or operations.
