Latest 214 Questions and Correct Answers 2024 | Complete Study Guide

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ARM 401 Exam Test Bank 2 Latest 214 Questions
and Correct Answers / ARM 401 Holistically
Assessing Risk Exam Prep Qs and As


types of insurance - ...ANSWER...✓✓ -Term Life
-Whole Life
-Universal Life
-Variable Life
-Group Life


Term life insurance - ...ANSWER...✓✓ -provides death
benefits for a SPECIFIED period
-doesn't provide for the accumulation of cash value
-straight term/decreasing term policy


straight term policy - ...ANSWER...✓✓ coverage remains
unchanged throughout the effective period


decreasing term policy - ...ANSWER...✓✓ premium
remains unchanged while coverage decreases

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Whole life insurance - ...ANSWER...✓✓ -provides
permanent insurance coverage during an individual's
entire life
(more expensive than term life insurance bc you have a
higher chance of dying)


Types of whole life insurance - ...ANSWER...✓✓ -
continuous premium: premiums paid until death/policy
cancellation
-limited payment: premiums paid for specified # of years
until death
-single premium: Lifetime coverage purchased with a
single premium


Universal Life insurance - ...ANSWER...✓✓ -permanent
cash-value insurance
-combines term insurance with a tax-sheltered savings
account
-death protection and savings portion premiums are
unbundled

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Variable Life insurance - ...ANSWER...✓✓ -coverage
amount varies with the profits generated in the
investment account
(throw in stock market and see what happens)


Group Life insurance - ...ANSWER...✓✓ -provides a
master policy for a group
(each eligible group member receives a certificate of
insurance)


Purpose of life insurance - ...ANSWER...✓✓ -protect
people from the financial consequences of losing assets
or income when and accident, illness, or death occurs


Benefits of life insurance - ...ANSWER...✓✓ -financial
protection for dependents
-protection from creditors
-tax benefits
-savings vehicle


types of health care - ...ANSWER...✓✓ -Health Insurance
-Health Maintenance Organization (HMO)

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-Government Health Insurance Plan


Health insurance - ...ANSWER...✓✓ Protects once
against:
-economic loss in the event of serious accidents or
illnesses
-rising cost of health care


Health Maintenance Organization - ...ANSWER...✓✓
Provides comprehensive health care services
-Group HMO: provides health care services from a central
facility (preventative)
-Individual practice association (IPA): provides services
from own offices a affiliated community hospitals


Government health insurance plans - ...ANSWER...✓✓ -
Medicare
-Medicaid
-Workers' compensation insurance