瑞达 Rejda 保险教材英文练习题13.docx

1、瑞达 Rejda 保险教材英文练习题13Principles of Risk Management and Insurance, 11e (Rejda)Chapter 13 Buying Life Insurance1) Major factors that must be considered in determining the cost of life insurance include all of the following EXCEPTA) time value of money.B) premiums paid.C) settlement options.D) dividends

2、.Answer: CQuestion Status: Previous Edition2) Under the traditional net cost method, the net cost of life insurance for a given period (e.g., 20 years) is determined by which of the following formulas?A) the total premiums for the period less the policy reserve at the end of the period.B) the total

3、premiums for the period less the sum of the total dividends received during the period and the cash value at the end of the period.C) the sum of the total premiums and dividends for the period less the cash value at the end of the period.D) the sum of the total dividends received during the period a

4、nd the cash value at the beginning of the period less the total premiums paid for the period.Answer: BQuestion Status: Previous Edition3) Which of the following statements about the traditional net cost method of measuring the cost of life insurance is (are) true?I. The traditional net cost method d

5、oes not consider the time value of money. II. The traditional net cost method can show that life insurance has a negative cost. A) I only B) II only C) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition4) All of the following statements about the surrender cost index for meas

6、uring the cost of life insurance are true EXCEPTA) It is based on a specific time period, such as 10 or 20 years.B) It takes into account the settlement options available in the policy.C) It requires that annual premiums be accumulated at a specified interest rate.D) It takes the amount and timing o

7、f each dividend into consideration.Answer: BQuestion Status: Previous Edition5) Which of the following statements describes how the net payment cost index differs from the surrender cost index?A) Dividends are ignored.B) The cash value is ignored.C) Premiums are not accumulated at a specified intere

8、st rate.D) Dividends are not accumulated at a specified interest rate.Answer: BQuestion Status: Previous Edition6) David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $

9、35,260. If the premiums were invested at 5 percent for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $24,400. The amount to which $1 deposited annually will accumulate in 20 years at 5 percent is $34.719. Based on thi

10、s information, what is the traditional net cost per thousand per year of Davids policy over the 20-year period?A) -$1.52B) -$2.64C) $5.17D) $9.75Answer: BQuestion Status: Previous Edition7) David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends

11、for the first 20 years are $15,624. The cash value after 20 years will be $35,260. If the premiums were invested at 5 percent for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $24,400. The amount to which $1 deposited

12、 annually will accumulate in 20 years at 5 percent is $34.719. Based on this information, what is the surrender cost per thousand per year of Davids policy over the 20-year period?A) $5.62B) $13.75C) $15.77D) $27.38Answer: AQuestion Status: Previous Edition8) David purchased a $100,000 participating

13、 whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $35,260. If the premiums were invested at 5 percent for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5 percent for 20

14、years, they would grow to be $24,400. The amount to which $1 deposited annually will accumulate in 20 years at 5 percent is $34.719. Based on this information, what is the net payment cost per thousand per year of Davids policy over the 20-year period?A) $5.62B) $13.75C) $15.77D) $27.38Answer: CQues

15、tion Status: Previous Edition9) Which of the following statements about the use of interest-adjusted cost data for comparing life insurance policies is (are) true?I. Using interest-adjusted cost data provides a more accurate measure of the cost of life insurance than is provided if the time value of

16、 money is ignored.II. Its use is most appropriate in deciding between policies when the cost variation is very small.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition10) Which of the following statements about the Linton yield is (are) true?I. It is bas

17、ed on the assumption that a cash-value policy can be viewed as a combination of insurance protection and a savings fund.II. It is the average compound annual rate of return required to make the savings deposits in a life insurance policy equal to the policys guaranteed cash value at the end of a spe

18、cified period.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition11) Which of the following statements about the yearly-rate-of-return method (also known as the Belth method) of calculating the yearly rate of return for a life insurance policy is (are) tr

19、ue?I. The formula requires the use of benchmark prices per $1,000 of protection.II. The main drawback of the formula is its complexity, necessitating the use of a computer to calculate the rate of return.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition

20、12) Consumer experts typically recommend all of the following rules when buying life insurance EXCEPTA) Consider the financial strength of the insurer.B) Deal with a competent agent.C) Ignore all factors other than cost.D) Shop around for a low-cost policy.Answer: CQuestion Status: Previous Edition1

21、3) Consumer experts typically recommend which of the following rules for purchasing life insurance?I. Avoid policies which pay dividends.II. Purchase life insurance equal to ten times your annual salary.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition1

22、4) Why might the use of grades assigned by a life insurance company rating organization not be a reliable guide for consumers?I. There are wide variations in grades given by the different rating organizations.II. They ignore factors such as profitability and quality of investments.A) I onlyB) II onl

23、yC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition15) Marshall is interested in determining the cost per thousand of his life insurance policy. Which of the following will provide Marshall the most meaningful measure of the cost per thousand dollars per year of his life i

24、nsurance?A) the needs approachB) the traditional net cost methodC) the human life value approachD) the surrender cost indexAnswer: DQuestion Status: Previous Edition16) Lynn calculated the future value of the first twenty premiums she will pay under her nonparticipating whole life insurance policy.

25、Then she subtracted the cash value after 20 years. Next, she divided this value by the future value annuity due factor for 20 years to arrive at an annual cost of insurance. Finally, she divided the annual cost by the number of thousands of dollars of life insurance purchased to arrive at the cost p

26、er thousand per year. Lynn calculated theA) traditional net cost per thousand per year.B) the Linton Yield.C) the surrender cost per thousand per year.D) the net payment cost per thousand per year.Answer: CQuestion Status: Previous Edition17) Which method of analyzing the cost of life insurance does

27、 not consider the cash value of the policy in the analysis?A) traditional net cost methodB) net payment cost indexC) the Linton YieldD) the surrender cost indexAnswer: BQuestion Status: Previous Edition18) Mary is interested in comparing life insurance policies. Rather than looking at the cost per t

28、housand, she would like to compare the rate of return earned on the savings portion of the policy. Which of the following would be of the most interest to Mary?A) the policys Linton YieldB) the policys surrender costC) the policys traditional net costD) the policys net payment costAnswer: AQuestion

29、Status: Previous Edition19) Which of the following statements is (are) true regarding taxation of life insurance?I. Life insurance proceeds paid in a lump-sum to a designated beneficiary are received free of federal income taxes.II. The policyowner must pay taxes annually on the amount by which the

30、cash value of his or her life insurance policy has increased.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition20) The first step in shopping for life insurance is toA) estimate the amount of life insurance to purchase.B) decide whether you want a policy

31、 which pays dividends.C) determine if you need life insurance.D) decide on the best type of life insurance for you.Answer: CQuestion Status: Previous Edition21) Lisa does not want her life insurance policy included in her gross estate when she dies. Lisa can remove the life insurance policy from her

32、 estate if she does which of the following more than 3 years before she dies?A) borrow the cash value of the policyB) make an absolute assignment of the policy to someone elseC) change the beneficiary to someone who does not have insurable interestD) select a lump sum settlement option and name her estate the beneficiaryAnswer: BQuestion Status: Prev