Cwmc Module 18: Insurance Competency Test

15 Questions

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Module Quizzes & Trivia

This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Insurance Module (Module 18) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module. Correct answers required for passing grade: 13/15


Questions and Answers
  • 1. 
    CWMC Module 18 on Insurance is NOT designed to teach Money Coaches:
    • A. 

      How to prepare employees to make wise insurance choices

    • B. 

      Everything they need to know about insurance

    • C. 

      Ways to avoid making costly mistakes when purchasing insurance

    • D. 

      Basic insurance terminology

    • E. 

      About the types of insurance protection available

  • 2. 
    CWMC Module 18 on Insurance IS designed to:
    • A. 

      Increase referrals for the nation’s top 10 insurance agents

    • B. 

      Enable Money Coaches to inform employees how to become experts on insurance

    • C. 

      Explain tax benefits of the Stimulus Plan

    • D. 

      Empower employees to learn how to make smart insurance decisions

    • E. 

      Help individuals find employment in the insurance field

  • 3. 
    Which of the following is NOT a type of insurance an employee would consider?
    • A. 

      Auto

    • B. 

      COBRA

    • C. 

      Home

    • D. 

      OSHA

    • E. 

      Pet

  • 4. 
    One downside of shopping for insurance exclusively on the Internet is:
    • A. 

      Comparing different rates

    • B. 

      Learning more about the companies providing the solutions

    • C. 

      Inability to meet and interview an agent

    • D. 

      Obtaining opinions and reviews of insurance companies

    • E. 

      Evaluating features offered by various carriers

  • 5. 
    Which of the following statements about auto insurance rates is true?
    • A. 

      Sporty, high performance vehicle coverage costs may be 2–3 times higher than standard cars

    • B. 

      Age is not a factor in insurance rates

    • C. 

      Clean driving records used to mean lower fees, but this is no longer the case

    • D. 

      Money Coaches are to provide the single best solution when it comes to buying insurance

    • E. 

      The minimum amount of insurance required in your state is typically enough

  • 6. 
    Which of the following factors affect the cost or amount of life insurance purchased? (check all that apply)
    • A. 

      A person’s career

    • B. 

      Whether or not a person is a single parent

    • C. 

      A person’s overall physical health

    • D. 

      Whether or not the person’s parents or siblings still alive and, if not, the manner in which they passed away

    • E. 

      None of the above; cost of life insurance is generally based on the age of the individual

  • 7. 
    Insurance fraud can be divided into a "hard" or a "soft" fraud. Which of the following frauds would be classified as "soft"?
    • A. 

      Staging a car accident

    • B. 

      Padding an insurance claim by telling “white lies”

    • C. 

      Arson

    • D. 

      Medicare fraud via illegal billing practices

    • E. 

      Falsely reporting a vehicle as stolen

  • 8. 
    Which of the following sources can be copied without violating copyright laws (plagiarizing information)?
    • A. 

      Anything found on the Internet

    • B. 

      U.S. government Web sites, even if the original information is linked to and came from a private site

    • C. 

      Books that have been in print for more than 10 years

    • D. 

      Cited works in the public domain

    • E. 

      All of the above

  • 9. 
    Once the first insurance premium is paid, regardless of the type of plan, a consumer should make sure he/she receives:
    • A. 

      The agent’s cell and home phone numbers

    • B. 

      An online rate comparison

    • C. 

      Verbal commitments

    • D. 

      A written policy

    • E. 

      Business cards with the insurance company's logo and contact information

  • 10. 
    When an insurance agent inserts extra coverage in a policy without the client's authorization, this practice is known as:
    • A. 

      Pinning

    • B. 

      Sliding

    • C. 

      Puffing

    • D. 

      Caking

    • E. 

      Passing

  • 11. 
    A consumer who purchases a $100,000 "whole" life insurance policy because of the additional "cash" component will generally: (check all that apply)
    • A. 

      Receive the cash, OR beneficiaries will receive $100,000 of the life insurance, but not both

    • B. 

      Pay up to four times more than an average term life insurance policy

    • C. 

      Have an agent with a very good sales pitch

    • D. 

      Be able to pass the cash value that has built up on to his/her beneficiaries

  • 12. 
    Even though Money Coaches don't make recommendations, one insurance policy consumers might consider dropping when money is tight is:
    • A. 

      Life insurance, if they are in good health and are parents of young children

    • B. 

      Auto insurance, if the car is old and not worth a lot

    • C. 

      Health insurance, if the family is fairly healthy

    • D. 

      Homeowner’s insurance, if they don’t live in a flood plain

    • E. 

      None of the above are acceptable to drop

  • 13. 
    Insurance agents generally make the highest commissions on which TWO of the following products? (check all that apply)
    • A. 

      Auto insurance

    • B. 

      Homeowners insurance

    • C. 

      Whole life insurance

    • D. 

      Pet insurance

    • E. 

      Annuities

  • 14. 
    8To save money, consumers may be able to get by without which one of the following types of insurance?
    • A. 

      Disability insurance for a healthy young father

    • B. 

      Full coverage auto insurance (collision AND liability) on an older car

    • C. 

      Life insurance on a non-working mother

    • D. 

      Renter’s insurance for young consumers renting their first house or apartment

    • E. 

      Health insurance if it’s currently unaffordable

  • 15. 
    8Which of the following terms would a Money Coach be LEAST likely to use and explain in an insurance-related Money Coaching response?
    • A. 

      Beneficiary

    • B. 

      COBRA

    • C. 

      Policy

    • D. 

      SHRM

    • E. 

      Premium