RMIN 4000 Edmunds Exam 3 Newest 2026 Questions
and Correct Detailed Answers Already Graded A+
what are some key family scenarios for life insurance - CORRECT ANSWER-
single person with children and one working spouse married with children
what factors influence how much life insurance is purchased - CORRECT
ANSWER-family size, income levels, existing financial assets and financial goals
human life value approach - CORRECT ANSWER-the present value of the
family's share of the deceased breadwinner's future earnings
needs approach - CORRECT ANSWER-the amount needed depends on the
financial needs that must be met if the family head should die
what are the steps in the human life value approach - CORRECT ANSWER-
estimate the individual's average earnings over his/her productive lifetime,
deduct taxes and self maintenance costs, and determine the present value of
family's share of earnings for # of years until retirement using a discount rate
,what are some disadvantages of human life value approach - CORRECT
ANSWER-ignores assets and other income sources like social security, earnings
and expenses assumed to be constant, based on income rather than need, and
inflation effects are ignored
basic parts of an insurance contract - CORRECT ANSWER-declarations,
definitions, insuring agreement, exclusions, conditions, and miscellaneous
provisions
declarations - CORRECT ANSWER-statements that provide information about
the particular property or activity to be insured
what does the declarations page usually contain - CORRECT ANSWER-name
and address, policy dates, amount of insurance, premium and deductible, and
other relevant info
definitions - CORRECT ANSWER-key words or phrases are defined so that
coverage under the policy can be determined more easily (insurer-"we,us,out" vs.
insured-"you,your")
insuring agreement - CORRECT ANSWER-summary of the major promises of
the insurer (what is covered)
, named perils - CORRECT ANSWER-only perils specifically named in the policy
are covered
open perils (All Risk, Special Coverage) - CORRECT ANSWER-all perils are
covered except for those that are specifically excluded
exclusions - CORRECT ANSWER-perils or property that are not covered under
the policy
why are exclusions necessary - CORRECT ANSWER-certain perils are
considered uninsurable like war and wear and tear
what are some reasons to have insurance contract exclusions - CORRECT
ANSWER-presence of extraordinary hazards, coverage provided by other
contracts, moral or morale hazard, or coverage not needed by typical insureds
conditions - CORRECT ANSWER-provisions in the policy that qualify or place
limitations on the insurer's promise to perform (prompt notification of loss, no
concealment or fraud, etc.)
and Correct Detailed Answers Already Graded A+
what are some key family scenarios for life insurance - CORRECT ANSWER-
single person with children and one working spouse married with children
what factors influence how much life insurance is purchased - CORRECT
ANSWER-family size, income levels, existing financial assets and financial goals
human life value approach - CORRECT ANSWER-the present value of the
family's share of the deceased breadwinner's future earnings
needs approach - CORRECT ANSWER-the amount needed depends on the
financial needs that must be met if the family head should die
what are the steps in the human life value approach - CORRECT ANSWER-
estimate the individual's average earnings over his/her productive lifetime,
deduct taxes and self maintenance costs, and determine the present value of
family's share of earnings for # of years until retirement using a discount rate
,what are some disadvantages of human life value approach - CORRECT
ANSWER-ignores assets and other income sources like social security, earnings
and expenses assumed to be constant, based on income rather than need, and
inflation effects are ignored
basic parts of an insurance contract - CORRECT ANSWER-declarations,
definitions, insuring agreement, exclusions, conditions, and miscellaneous
provisions
declarations - CORRECT ANSWER-statements that provide information about
the particular property or activity to be insured
what does the declarations page usually contain - CORRECT ANSWER-name
and address, policy dates, amount of insurance, premium and deductible, and
other relevant info
definitions - CORRECT ANSWER-key words or phrases are defined so that
coverage under the policy can be determined more easily (insurer-"we,us,out" vs.
insured-"you,your")
insuring agreement - CORRECT ANSWER-summary of the major promises of
the insurer (what is covered)
, named perils - CORRECT ANSWER-only perils specifically named in the policy
are covered
open perils (All Risk, Special Coverage) - CORRECT ANSWER-all perils are
covered except for those that are specifically excluded
exclusions - CORRECT ANSWER-perils or property that are not covered under
the policy
why are exclusions necessary - CORRECT ANSWER-certain perils are
considered uninsurable like war and wear and tear
what are some reasons to have insurance contract exclusions - CORRECT
ANSWER-presence of extraordinary hazards, coverage provided by other
contracts, moral or morale hazard, or coverage not needed by typical insureds
conditions - CORRECT ANSWER-provisions in the policy that qualify or place
limitations on the insurer's promise to perform (prompt notification of loss, no
concealment or fraud, etc.)
