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ABA CTFA Practice Test - Questions Answers, Page 36

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Question 351

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Need analysis method is a more detailed approach than multiple-of-earnings method. This method considers both financial obligations and financial resources of the insured and his or her dependents. Which of the following steps is/are involved in this method?

A.
Estimate the total economic resources needed if the individual were to die
A.
Estimate the total economic resources needed if the individual were to die
Answers
B.
Determine all financial resources that would be available after death, including existing life insurance and pension plan death benefits
B.
Determine all financial resources that would be available after death, including existing life insurance and pension plan death benefits
Answers
C.
Subtract available resources from the amount needed to determine how much additional life insurance is required
C.
Subtract available resources from the amount needed to determine how much additional life insurance is required
Answers
D.
All of these
D.
All of these
Answers
Suggested answer: D
asked 16/09/2024
james james
33 questions

Question 352

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Insurance that provides only death benefits, for a specified period, and does not provide accumulation of cash value is called:

A.
Straight term policy
A.
Straight term policy
Answers
B.
Term life insurance
B.
Term life insurance
Answers
C.
Decreasing term policy
C.
Decreasing term policy
Answers
D.
Renewability
D.
Renewability
Answers
Suggested answer: B
asked 16/09/2024
David Washington
32 questions

Question 353

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It is a term life policy written for a given number of years with coverage remaining unchanged throughout the effective period. What is it?

A.
Straight term policy
A.
Straight term policy
Answers
B.
Term life insurance
B.
Term life insurance
Answers
C.
Decreasing term policy
C.
Decreasing term policy
Answers
D.
Renewability
D.
Renewability
Answers
Suggested answer: A
asked 16/09/2024
Jesse Moisio
43 questions

Question 354

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It is a term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability

A.
Straight term policy
A.
Straight term policy
Answers
B.
Term life insurance
B.
Term life insurance
Answers
C.
Decreasing term policy
C.
Decreasing term policy
Answers
D.
Renewability
D.
Renewability
Answers
Suggested answer: D
asked 16/09/2024
Jose Osnayo
44 questions

Question 355

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Decreasing term policy is:

A.
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection decreases
A.
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection decreases
Answers
B.
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection increases
B.
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection increases
Answers
C.
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection remains unchanged
C.
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection remains unchanged
Answers
D.
None of these
D.
None of these
Answers
Suggested answer: D
asked 16/09/2024
Kellen Winters
40 questions

Question 356

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__________ is the accumulated refundable value of an insurance policy; results from the investment earnings on paid-in insurance premiums.

A.
Cash value
A.
Cash value
Answers
B.
Nonforefeiture right
B.
Nonforefeiture right
Answers
C.
Decreasing term policy
C.
Decreasing term policy
Answers
D.
Continuous premium
D.
Continuous premium
Answers
Suggested answer: A
asked 16/09/2024
Mark Anthony Simon
38 questions

Question 357

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Three major types of whole life policies are available. Which of the following is/are Not out of those?

A.
Continuous Premium
A.
Continuous Premium
Answers
B.
Limited Premium
B.
Limited Premium
Answers
C.
Single premium
C.
Single premium
Answers
D.
None of these
D.
None of these
Answers
Suggested answer: D
asked 16/09/2024
Geetanjali Singh
36 questions

Question 358

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Whole life insurance is a life insurance designed to offer ongoing insurance coverage over the course of an insured's entire life. The noteworthy advantage of whole life insurance is:

A.
Premium payments contribute towards building an estate
A.
Premium payments contribute towards building an estate
Answers
B.
One can budget premium payments for a long period
B.
One can budget premium payments for a long period
Answers
C.
It's a low-load life insurance
C.
It's a low-load life insurance
Answers
D.
These are sold only by agents
D.
These are sold only by agents
Answers
Suggested answer: A
asked 16/09/2024
Anu V
34 questions

Question 359

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Group health insurance is the health insurance consisting of contracts written between a group, (employer, union, etc.) and the health care provider. Most health insurance plans fall into one of two categories. Which one of the following set represents those two categories?

A.
Traditional indemnity and PPO
A.
Traditional indemnity and PPO
Answers
B.
Traditional indemnity and managed care plans
B.
Traditional indemnity and managed care plans
Answers
C.
Fee-for-service indemnity and managed care plans
C.
Fee-for-service indemnity and managed care plans
Answers
D.
Both B and C
D.
Both B and C
Answers
Suggested answer: D
asked 16/09/2024
Silfredo Jimenez Munoz
35 questions

Question 360

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A form of HMO in which subscribers receive services from physicians practicing from their own offices and from community hospitals affiliated with the IPA.

A.
Individual practice association
A.
Individual practice association
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B.
Preferred provider organization
B.
Preferred provider organization
Answers
C.
Exclusive provider organization
C.
Exclusive provider organization
Answers
D.
Point-of-service plan
D.
Point-of-service plan
Answers
Suggested answer: A
asked 16/09/2024
Marcelo I Sotelo S
36 questions
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