PT Ch06 - Exam Name MULTIPLE CHOICE Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the below is TRUE of term life insurance? 1) A) The policyholder can borrow against the policy. B) If the insured does not die within the period, the policy is valid and still has a cash value. C) If the insured retires at the age of 62 while the policy is intact, the beneficiary of the policy receives the benefit. D) Term insurance is pure life insurance. 2) Until the past decade, the major type of health insurance available was ________ insurance. 2) A) reimbursement B) well - being C) indemnity D) medical 3) Insurance companies are monitored by ________. 3) 4) A new form of insurance company, which is a hybrid between a pure mutual and a pure stock company, has been approved by some states and implemented by some insurance companies in these states since their introduction in 1996. This form is called a ________. 4) 5) ________ policies allow the policy owners to allocate their premium payments to and among separate investment accounts maintained by the insurance company, within limits, and also to be able to shift the policy cash value among the separate accounts. 5) 6) Which of the below is TRUE of a mutual insurance company? 6) A) The owners, and not the policyholders, care primarily or even solely about the performance on their insurance policies, notably the company's ability to pay on the policy. B) Mutual insurance companies have stock and external owners. C) While stock insurance companies have two constituencies, their stockholders and their policyholders, mutual insurance companies only have one, since their policyholders and their owners are the same. D) Traditionally the smallest insurers have been mutual, but recently there have been many demutualizations, that is, conversions by mutual companies to stock companies. 1
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7) Which of the below statements is FALSE? 7)
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