A “living will” A) is also know as an irrevocable living trust. B) automatically redirects assets to your beneficiaries as you age. C) is a medical directive indicated the type of life support you wish to receive should you be incapacitated. D) transfers your assets to your beneficiaries before you die in the event you […]
A dividend reinvestment plan (DRIP) A) is offered by most stockbrokerage firms, rather than individual companies. B) is constructed to acquire a fixed number of shares when dividends are paid. C) accomplishes the same objective as dollar cost averaging; i.e., investing a relatively fixed amount of funds at regular intervals. D) offers investors the choice […]
Reducing the face amount of dwelling protection is an example of risk transfer. Indicate whether the statement is true or false ANSWER FALSE
Which of the following definitions of disability provides the best protection against a reduction in your income? A) You are disabled if you cannot perform the main duties of your regular occupation. B) You are disabled if you are unable to engage in any occupation for which you are suited by training and experience. C) […]
About one-half of individuals in a given age grouping are likely to die before reaching their life expectancy. Indicate whether the statement is true or false ANSWER TRUE
Risk avoidance is not always the best risk management strategy. Indicate whether the statement is true or false ANSWER TRUE
Which item below is not a valid reason for selling a security? A) Its price has increased to such an extent that it is now overvalued. B) Its alpha has increased. C) The investor has an opportunity for a tax swap. D) The investor’s objectives change. ANSWER B
The coordination of benefits clause in disability policies typically A) sets a maximum on the disability benefits you may receive from all sources. B) sets a minimum on the disability benefits you may receive from all sources. C) attempts to time the benefits so that they are received when needed. D) coordinates benefits from health […]
Homeowners’ insurance does not reimburse you for losses due to your own negligence. Indicate whether the statement is true or false ANSWER FALSE
All risks insurance provides better protection than named perils insurance. Indicate whether the statement is true or false ANSWER TRUE
