Question

For the same amount of premiums in comparison to whole life insurance, term life insurance generally purchases

a.a greater amount of coverage.

b.less amount of coverage.

c.the same amount of coverage.

d.a higher deductible.

e.a lower deductible.

Annual Cost-of-Living-Adjustment (COLA) changes of coverage levels within long-term care insurance, disability insurance, or homeowner's insurance policies is generally deigned to protect policyholders against

a.the adverse event occurring.

b.lower rates of return.

c.lack of insurability.

d.the company defaulting on its payments.

e.inflation.

Over the course of several years, property and casualty insurance (e.g. homeowner's insurance, auto insurance) expects to encounter _________ claims from a customer, and health insurance expects to encounter ___________ claims from a customer.

a.frequent; frequent

b.frequent; infrequent

c.infrequent; frequent

d.infrequent; infrequent

e.ulcer-oriented; more ulcer-oriented

In a Term Life Insurance policy, as an individual continues with the policy over a number of years with a fixed level of coverage

a.the annual premiums will generally increase over time.

b.the annual premiums will generally decrease over time.

c.the annual premiums will generally stay the same over time.

d.the household's equity or wealth due to the policy will increase over time.

e.the household's equity or wealth due to the policy will decrease over time.

Answer 1

1. A

2.E

3.C

4.C

Step-by-step explanation:

1. Term life insurance purchases greater amount of coverage since it does not constitute the life time of the insured like the whole life insurance

2.The insurer may adjust annual cost of living and coverage levels to take care of inflation

3.auto insurance does not involve frequent risks like the risk of falling ill in health insurance.

4.annual premium will remain the same since coverage level remains fixed