the economics of money, banking, and financial markets

333 #

© 2014 Pearson Canada Inc.#

8. 
   

   An example of permanent insurance is ____ insurance, and an example of temporary
   insurance is ____ insurance.
   A) term; variable life
   B) term; whole life
   C) whole life; variable life
   D) whole life; term
   Answer: D
   Diff: 1 Type: MC Page Ref: 272
   Skill: Recall
   Objective List: 12.1 Identify the important aspects of the insurance industry

   
   


9. 
   

   Permanent insurance is also known as ____.
   A) endowment insurance
   B) term insurance
   C) group insurance
   D) individual insurance
   Answer: A
   Diff: 1 Type: MC Page Ref: 272
   Skill: Recall
   Objective List: 12.1 Identify the important aspects of the insurance industry

   
   


10. 
    

    Which of the following is an example of temporary life insurance?
    A) The policy holder can borrow against the cash value.
    B) It provides an annuity until death.
    C) The premium is constant through the life of the policy.
    D) The premium is matched every year to the amount needed to match against death.
    Answer: D
    Diff: 1 Type: MC Page Ref: 272
    Skill: Recall
    Objective List: 12.1 Identify the important aspects of the insurance industry

    
    


11. 
    

    Which of the following is an example of permanent life insurance?
    A) The policy has no the cash value.
    B) It provides an annuity until death.
    C) The premium is constant through the life of the policy.
    D) The premium is matched every year to the amount needed to match against death.
    Answer: C
    Diff: 2 Type: MC Page Ref: 272
    Skill: Recall
    Objective List: 12.1 Identify the important aspects of the insurance industry