The Risk Management technique which involves the lowering of the probability of a particular hazard occurring is called: Risk Avoidance Risk Reduction Risk Assumption Risk Transfer The first step in determining how much life insurance you may need is: Considering the income of other family members Determining what survivor benefits may be available from Social Security or employer-sponsored plans Establishing the dollar value of the need Deciding how much coverage you can afford. Which of these characteristics is NOT true of term insurance? No cash value build up Premiums are less expensive than with other plans. Term insurance is purchased for a certain period of time. At the end of the "term" the coverage may be continued for the same premium. All of the following are examples of cash value life insurance EXCEPT: Level Term Life Variable Life Universal Life Whole Life The following factor(s) should be considered when choosing an insurance company: Financial strength of company Availability of local professional service personnel Cost Comparative policy benefits All of the above Which of the following is a TRUE statement concerning the taxation of life insurance policies? Policy loans are taxed as capital gains. Death benefit is received income-tax free All cash withdrawn from the policy will be subject to income tax. Dividends are taxable as ordinary income. The type of medical insurance plan which features co-pays at the time of service and a limited number of providers, with one physician serving as the "gatekeeper" who directs all non-emergency care is known as: Preferred Provider Organization Indemnity Plan Comprehensive Medical Plan Health Maintenance Organization Fee For Service Plan Most long term care expenses are paid by: Medicaid after the "spend-down" of personal financial resources Medicare Part A Medicare Part B Medicare Supplemental Policies Health Maintenance Organizations All of the following factors affect the cost of a disability income policy EXCEPT: Age Occupation Duration of Benefits How many years in current occupation Length of elimination period . Section II E of your Homeowners Policy provides coverage for: The dwelling Other Structures Liability Loss Loss of Personal Property Loss of Use of Property
