#1
Which of the following is a type of life insurance that provides coverage for a specific period?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#2
What does the term 'premium' refer to in insurance?
The amount paid by the insured for coverage
The total coverage provided by the policy
The duration of the policy
The deductible amount
#3
What does the term 'annuity' refer to in the context of financial services?
A lump sum payment made to the insured
A series of regular payments made to the annuitant
An investment fund managed by the insurance company
A type of life insurance policy
#4
What is the purpose of a beneficiary designation in an insurance policy?
To determine the premium amount
To specify the coverage period
To designate who receives the policy benefits
To adjust the deductible
#5
Which of the following is a characteristic of term life insurance?
Builds cash value over time
Provides coverage for a specific period
Offers investment options
Requires a medical exam for approval
#6
Which of the following is a characteristic of universal life insurance?
Fixed premiums
No cash value accumulation
Flexible death benefit
Coverage for a specific term
#7
Which of the following is NOT a type of property insurance?
Homeowners insurance
Renters insurance
Disability insurance
Flood insurance
#8
What is the purpose of a deductible in insurance policies?
To reduce the premium cost
To limit the coverage amount
To determine the coverage period
To increase the coverage amount
#9
What is the primary function of an insurance underwriter?
To assess risk and determine premium rates
To investigate insurance claims
To market insurance products
To manage investment portfolios
#10
Which of the following is NOT typically covered by a standard homeowners insurance policy?
Damage from fire
Flood damage
Theft of personal belongings
Liability coverage
#11
What is the primary function of a financial advisor?
To provide insurance underwriting services
To manage investment portfolios
To assess risk and determine premium rates
To help clients plan their financial goals and investments
#12
Which of the following insurance policies typically offers cash value accumulation?
Term life insurance
Whole life insurance
Variable life insurance
Universal life insurance
#13
Which financial service involves pooling funds from many clients to invest in a diversified portfolio of securities?
Mutual funds
Savings accounts
Certificates of deposit
Individual stocks
#14
What is the purpose of reinsurance in the insurance industry?
To provide coverage for high-risk individuals
To transfer risk from primary insurers to other insurers
To regulate insurance rates
To investigate fraudulent claims
#15
Which of the following is NOT a characteristic of a traditional whole life insurance policy?
Fixed premiums
Cash value accumulation
Coverage for a specific term
Death benefit
#16
What is the primary function of a deductible in an insurance policy?
To limit the coverage amount
To determine the premium cost
To increase the coverage period
To adjust the beneficiary designation
#17
Which of the following is a type of disability insurance that covers a portion of the insured's income if they become unable to work due to a disability?
Short-term disability insurance
Long-term disability insurance
Supplemental disability insurance
Workers' compensation insurance
#18
Which of the following is a type of insurance that provides coverage for damage to a rented property?
Homeowners insurance
Renters insurance
Auto insurance
Umbrella insurance