What is one of the primary differences between a Coverdell Education Savings Account and 529 Savings Plan?

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Grading Summary

These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the “Details” section below.

Date Taken:	3/24/2017
Time Spent:	1 h , 25 min , 00 secs
Points Received:	25.00 / 25.00 (100%)

Question Type:	# Of Questions:	# Correct:
True/False	1	1
Multiple Choice	29	29

Grade Details – All Questions

Question 1.

Question :

Ralf owns a home with a fireplace and a generator. He has stacks of wood and several 55-gallon drums
of camping oil in his garage. He likes to go camping and leaves his home for several days at a time, often
with a fire burning in his fireplace. In addition, he leaves his home unlocked. Which of the following
hazards apply?

			Physical hazard and moral hazard.
			Morale hazard only.
			Morale hazard and physical hazard.
			Physical hazard only.

	Points Received:
	Comments:

Question 2.

Question :

Brea is looking for an insurance policy for her car. Her friend, Justin, who is an attorney, just told her
that the policy is a contract and has some unique characteristics. Which of the following terms applies to the insurance contract?
1. Unilateral.
2. Aleatory.
3. Adhesive.

			Statements 1 and 2.
			Statement 2 only.
			Statements 2 and 3.
			Statements 1, 2 and 3.

	Points Received:
	Comments:

Question 3.

Question :

Nancy owns a home and an automobile. She has property insurance, but does not have disability
insurance through her employer. She does not know that much about disability, except that a friend of
hers told her that she needed to acquire it. Which of the following are important elements of a disability
policy?

			The definition of disability.
			Coverage for sickness and accidents.
			The elimination period.
			All of the above.

	Points Received:
	Comments:

Question 4.

Question :

Janice is a nurse in the critical care department. She has property insurance, but does not have disability insurance through the hospital. She does not know that much about disability, except that a friend of hers told her that she needed to acquire it. Which of the following statements is correct?

			Any occupation is the better choice for coverage than own occupation.
			The elimination period is the period after the policy stops paying benefits.
			A guaranteed renewable feature of a policy obligates the insurer to continue coverage as long as premiums are paid on the policy.
			All of the above.

	Points Received:
	Comments:

Question 5.

Question :

Lenny works at a hotel in accounting. He is planning on purchasing a home and has met with an
insurance agent. However, he is really not clear about all the policies that they discussed. Which of the following statements is correct?

			It is better to purchase a named peril homeowners policy.
			PLUPs are generally inexpensive relative to the coverage they provide.
			The rates on auto insurance are relatively uniform among the states.
			It is important to get a homeowners policy that provides for contents protection equal to actual cash value.

	Points Received:
	Comments:

Question 6.

Question :

Loss severity is the:

			Probability that a liability judgment may exceed an individual’s net worth.
			Probable size of a loss that may occur.
			Probable number of losses that may occur.
			Probability that a particular property could be totally lost.

	Points Received:
	Comments:

Question 7.

Question :

Which of the following is not a response to a perceived risk?

			Risk avoidance.
			Risk reduction.
			Risk transmission.
			Risk transfer.

	Points Received:
	Comments:

Question 8.

Question :

Which of the following statements is / are correct?
1. The cause of a loss is a peril.
2. A hazard is a condition that increases the probability of a loss occurring.

			1 only.
			2 only.
			Both 1 and 2.
			Neither 1 nor 2.

	Points Received:
	Comments:

Question 9.

Question :

B.J. leaves his garage door open during the day because he knows he has property insurance and he is
lazy. One day someone steals his new truck from his garage. Leaving the garage door open is an example
of:

			Physical hazard.
			Moral hazard.
			Morale hazard.
			A peril – theft.

	Points Received:
	Comments:

Question 10.

Question :

In order to have an insurable risk, all of the following must be present except?

			The loss must be measurable.
			The loss must be accidental from the insured’s point of view.
			The loss cannot be catastrophic to the insured.
			The loss must be from a covered exposure.
	Instructor Explanation:

	Points Received:
	Comments:

Question 11.

Question :

Conditions that increase either the frequency or severity of loss are called:

			Circumstances.
			Risks.
			Hazards.
			Perils.
	Instructor Explanation:

	Points Received:
	Comments:

Question 12.

Question :

An HO-3 policy (“open perils” except those specifically excluded) with no endorsements excludes which
one of the following perils?

			Flood.
			Fire.
			Collapse.
			Weight of ice.
	Instructor Explanation:

	Points Received:
	Comments:

Question 13.

Question :

When fine arts or gun collections are insured under a homeowners policy by endorsement,

			Coverage is usually on a replacement cost basis.
			Coverage is usually on an actual cash value basis.
			Coverage is usually provided on an agreed to valued basis.
			The perils covered are the same as the homeowners policy to which the endorsement is attached.

	Points Received:
	Comments:

Question 14.

Question :

Which of the following is / are true regarding the ownership of life insurance?
1. A policy can only be issued to the insured.
2. Generally, assigning a policy requires proof that the insured is still “insurable” meaning still in
good health.
3. Only a person with an insurable interest, generally a relative, a business associate, or lender, can
be named as beneficiary.
4. The owner of a life insurance policy can assign (transfer) the policy to whomever he or she
chooses, even if the assignee has no insurable interest.

			2 only.
			4 only.
			2 and 4.
			1, 2, and 3.
	Instructor Explanation:

	Points Received:
	Comments:

Question 15.

Question :

A contract for variable life insurance may be characterized as a/an:
1. Unilateral contract.
2. Aleatory contract.
3. Conditional contract.
4. Contract of adhesion.

			1 and 3.
			2 and 4.
			1, 2, and 3.
			1, 2, 3, and 4.
	Instructor Explanation:

	Points Received:
	Comments:

Question 16.

Question :

Which one of the following statements is wrong?

			A student must submit a FAFSA (Free Application for Federal Student Aid) form to be eligible to receive federal financial aid.
			The four repayment plans for a Stafford loan are: standard repayment, extended repayment, graduated repayment, and income based repayment.
			Factors used in calculation the EFC include taxable and nontaxable income, assets, retirement funds, and benefits, such as unemployment and Social Security.
			PLUS (Parent Loan for Undergraduate Students) loans are for parents to borrow to help pay for a dependent’s undergraduate education expenses, and are based on financial need.
	Instructor Explanation:

	Points Received:
	Comments:

Question 17.

Question :

Which one of the following statements is wrong?

			A Pell Grant is a federally funded grant awarded to undergraduate students who have not earned a Bachelors or graduate degree.
			The EFC calculation, which is based on a student’s ACT score, is used to determine eligibility and / or award amount for a Pell Grant.
			One type of Stafford loan is the direct Stafford loan that is provided directly to the student from the Department of Education.
			One type of Stafford loan is the FFEL Stafford Loan, where funds are lent to the student through a lender who participates in the FFEL program.

	Points Received:
	Comments:

Question 18.

Question :

All of the following statements concerning educational fund 529 Savings Plans are correct EXCEPT: