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Question: What is universal life insurance? Explain how


What is universal life insurance? Explain how it differs from whole life and variable life insurance.



> What is a personal liability umbrella policy? Under what circumstances might it be a wise purchase?

> Briefly describe the following supplemental property insurance coverage: (a) earthquake insurance, (b) flood insurance, and (c) other forms of transportation insurance.

> Discuss the role of financial responsibility laws and describe the two basic types currently employed.

> Describe the important factors that influence the availability and cost of auto insurance.

> Define no-fault insurance and discuss its pros and cons.

> Explain the nature of (a) automobile collision insurance and (b) automobile comprehensive insurance.

> Briefly explain the major types of coverage available under the personal auto policy (PAP). Which persons are insured under (a) automobile medical payments coverage and (b) uninsured motorist’s coverage?

> Jun Hsieh, a 38-year-old widowed mother of three children (ages 12, 10, and 4), works as a product analyst for Panama Hats. Although she’s covered by a group life insurance policy at work, she feels, based on some rough calculations, that she needs addit

> Briefly explain the fundamental concepts related to property and liability insurance.

> What is the objective of workers’ compensation insurance? Explain its benefits for employees who are injured on the job or become ill through work-related causes.

> Who is eligible for Medicare and Medicaid benefits? What do those benefits encompass?

> Briefly explain how an HMO works. Compare and contrast group HMOs, IPAs, and PPOs.

> Describe the features of traditional indemnity (fee-for-service) plans and explain the differences between them and managed care plans.

> What is group health insurance? Differentiate between group and individual health insurance.

> Why is it important to consider benefit duration when shopping for disability income coverage?

> Describe both the liberal and strict definitions used to establish whether an insured is disabled.

> What is disability income insurance? Explain the waiting-period provisions found in such policies.

> Discuss some of the questions one should ask before buying long-term-care insurance. What guidelines can be used to choose the right policy?

> Grant Tyson, a 27-year-old bachelor living in Arlington, Virginia, has been a high-school teacher for five years. For the past four months, he’s been thinking about buying a Subaru Outback, but he feels that he can’t a

> Describe the differences among long-term-care policies regarding (a) type of care, (b) eligibility requirements, and (c) services covered. List and discuss some other important policy provisions.

> Why should a consumer consider purchasing a long-term care insurance policy?

> What factors have contributed to today’s high costs of health care and health insurance?

> Explain the cost containment provisions commonly found in medical expense plans. How might the provision for second surgical opinions help an insurer contain its costs?

> What are the key provisions of COBRA? How do they relate to continuation of group coverage when an employee voluntarily or involuntarily leaves the insured group?

> Describe these policy provisions commonly found in medical expense plans: (a) deductibles, (b) co-insurance, and (c) coordination of benefits.

> What are the features of a major medical plan? Compare major medical to comprehensive major medical insurance.

> Explain the differences between hospitalization insurance and surgical expense insurance.

> Answer the key questions posed to help you choose a plan, based on your current situation. What type of plan do you think will best suit your needs?

> Discuss possible sources of health insurance available to supplement employer sponsored health insurance plans.

> At age 19, Zoe Trainor is in the middle of her second year of studies at a community college in Charlotte. She has done well in her course work; majoring in pre-business studies, she currently has a 3.75 grade point average. Zoe lives at home and works p

> Explain what factors should be considered in evaluating available employer-sponsored health insurance plans.

> Explain four methods for controlling the risks associated with health care expenses.

> What are the key provisions of the ACA? How is it likely to affect your health care insurance?

> What is term life insurance? Describe some common types of term life insurance policies.

> What are some factors that underwriters consider when evaluating a life insurance application? Which, if any, apply to you or your family members?

> Name and explain the most common financial resources needed after the death of a family breadwinner.

> Discuss the two most commonly used ways to determine a person’s life insurance needs.

> Explain the circumstances under which a single college graduate would or would not need life insurance. What life-cycle events would change this initial evaluation, and how might they affect the graduate’s life insurance needs?

> Explain the purpose of underwriting. What are some factors that underwriters consider when evaluating a life insurance application?

> Describe the key elements of an insurance policy illustration and explain what a prospective client should focus on in evaluating an illustration.

> A year after declaring bankruptcy and moving with her daughter back into her parents’ home, June Maffeo is about to get a degree in nursing. As she starts out in a new career, she also wants to begin a new life—one built on a solid financial base. June w

> Explain the following clauses often found in life insurance policies: (a) multiple indemnity clause, (b) disability clause, and (c) suicide clause. Give some examples of common exclusions.

> What do non forfeiture options accomplish? Differentiate between paid-up insurance and extended term insurance.

> Explain the basic settlement options available for the payment of life insurance proceeds upon a person’s death.

> What is a beneficiary? A contingent beneficiary? Explain why it’s essential to designate a beneficiary for your policy.

> Define (a) risk avoidance, (b) loss prevention, (c) loss control, (d) risk assumption, and (e) an insurance policy. Explain their interrelationships.

> Briefly describe the insurance company ratings assigned by A. M. Best, Moody’s, Fitch, and Standard & Poor’s. Why is it important to know how a company is rated? What ratings would you look for when selecting a life insurance company? Explain.

> Briefly describe the steps to take when you shop for and buy life insurance.

> Explain how group life insurance differs from standard term life insurance. What do employees stand to gain from group life?

> Describe the different types of whole life policies. What are the advantages and disadvantages of whole life insurance?

> Felipe and Lucia Ramirez are a newly married couple in their mid-20s. Conrad is a senior at a state university and expects to graduate in the summer of 2015. Lucia graduated last spring with a degree in marketing and recently started working as a sales r

> Explain how the “paid-up insurance” component of a whole life insurance policy works.

> Explain how whole life insurance offers financial protection to an individual throughout his or her life.

> What are the advantages and disadvantages of term life insurance?

> Discuss the role that insurance plays in the financial planning process. Why is it important to have enough life insurance?

> List and briefly discuss the different factors to consider when shopping for a loan. How would you determine the total cost of the transaction?

> What two questions should be answered before taking out a consumer loan? Explain.

> Discuss the role in consumer lending of (a) credit unions and (b) savings and loan associations. Point out any similarities or differences in their lending activities. How do they compare with commercial banks?

> Compare the consumer lending activities of (a) consumer finance companies and (b) sales finance companies. Describe a captive finance company.

> Define and differentiate between (a) fixed- and variable-rate loans and (b) a single payment loan and an installment loan.

> Explain some strategies for reducing the cost of student loans.

> Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,200 a month. After much thought, she’s seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expec

> As a college student, what aspects of these student loan programs appeal to you the most?

> Identify several different types of federally sponsored student loan programs.

> Define simple interest as it relates to an installment loan. Are you better off with add-on interest? Explain.

> Explain why a borrower is often required to purchase credit life and disability insurance as a condition of receiving an installment loan.

> What is a home equity loan, and what are its major advantages and disadvantages?

> Briefly describe the basic features of an installment loan.

> Describe the two methods used to calculate the finance charges on a single payment loan. As a borrower, which method would you prefer? Explain.

> When might you request a loan rollover?

> What is a lien, and when is it part of a consumer loan?

> List and briefly discuss the five major reasons for borrowing money through a consumer loan.

> Ben and Marie Gerrard, both in their mid-20s, have been married for four years and have two preschool-age children. Ben has an accounting degree and is employed as a cost accountant at an annual salary of $62,000. They’re now renting a duplex but wish to

> During the Christmas break of his final year at the University of Maryland (UMD), Jim Curtis plans to put together his résumé in order to seek full-time employment as a software engineer during the spring semester. To help Jim prepare for the job intervi

> Describe the similarities and differences between the nonparametric test for two unpaired samples and the unpaired t test.

> a. Can the nonparametric test for two unpaired samples be used with quantitative data? Why or why not? b. Can the nonparametric test for two unpaired samples be used with ordinal data? Why or why not? c. Can the non parametric test for two unpaired sampl

> a. What happens if there is an outlier in one of the samples in a test of two unpaired samples? For each case (very large or very small outlier), say what the rank of the outlier would be. b. Which statistical method (nonparametric or parametric) is more

> a. What is the difference (if any) between the Wilcoxon rank-sum test and the Mann-Whitney U test? b. What is the relationship between the Wilcoxon rank-sum test, the Mann-Whitney U test, and the test based on the difference between the average overall r

> An advertisement is being tested to see if it is effective in creating the intended mood of relaxation. A sample of 15 people was tested just before and just after viewing the ad. Their questionnaire included many items, but the one being considered now

> What problems, if any, are visible in the control charts in Fig. 18.5.4? What action (if any) would you suggest? Fig. 18.5.4: 10 10- 5 10 15 10 15 FIG. 18,5.4 Averages Ranges

> What problems, if any, are visible in the control charts in Fig. 18.5.3? What action (if any) would you suggest? Fig. 18.5.3: 10 10 0- 5 10 15 10 15 FIG. 18.5.3 Averages Ranges

> What problems, if any, are visible in the control charts in Fig. 18.5.6? What action (if any) would you suggest? Fig. 18.5.6: 10 10 - 10 15 10 15 FIG. 18.5.6 Averages Ranges

> What problems, if any, are visible in the control charts in Fig. 18.5.5? What action (if any) would you suggest? Fig. 18.5.5: 10 10 AAA 5 10 15 5 10 15 FIG. 18.5.5 Averages Ranges

> Are your customers special? In particular, is their interest level in your promotional newsletter higher than for potential customers (who are not currently customers)? Justify your answer by reporting the chi-squared statistic and its degrees of freedom

> Why is it much more difficult to establish independence than it is to establish dependence (lack of independence)?

> Here are the numbers of new customers who signed up for full service during each quarter of last year: 106, 108, 72, and 89. a. How many would you have expected to see in each quarter if these customers had signed up at exactly the same rate throughout t

> Use the data sets from problems 2 and 3, on profit as a percent of sales for building materials firms and for aerospace firms. a. Find the median profit for each industry group and compare them. b. Combine the two data sets into a single column of profit

> a. Describe the data set consisting of two unpaired samples. b. What hypotheses would ordinarily be tested for such data?

> What is the purpose of the chi-squared test for independence?

> a. What assumption must be met for the sign test to be valid? b. What assumption is not required for the sign test but would be required for a t test to be valid?

> a. What is meant by independence of two qualitative variables? b. What is the relationship between conditional probabilities and independence of qualitative variables?

> Can statistical process control be applied to business activities in general, or is it restricted to manufacturing?

> What is the purpose of the chi-squared test for equality of percentages?

> a. What is a parametric statistical method? b. Name some parametric methods you have used.

> For what kind of variables are chi-squared tests useful?

> Describe the similarities and differences between the sign test for the differences and the paired t test.

> a. How should you interpret this statement: One test is more efficient than another? b. If the distribution is normal, which would be more efficient, a parametric test or a nonparametric test? c. If the distribution is far from normal, which would be lik

> a. List the advantages of nonparametric testing over parametric methods, if any. b. List the disadvantages, if any, of nonparametric testing compared with parametric methods. How serious are these shortcomings?

> Your human resources department has referred 26 employees for alcohol counseling. While the work habits of 15 improved, 4 actually got worse, and the remaining 7 were unchanged. Use the sign test for the differences to tell whether significantly more peo

> a. What does the chi-squared statistic measure, in terms of the relationship between the observed data and the null hypothesis? b. Do you reject the null hypothesis for large or for small values of the chi-squared statistic? Why?

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