Mthel 131 Midterm Review

Front 1

What is the definition of Life Insurance?

Back 1

:)

Front 2

Top 3 financial concerns of Canadians

Back 2

:/

Front 3

What happened in 1583?

Back 3

:(

Front 4

What happened in 1757?

Back 4

:3

Front 5

Why did it take so long (1583-1757)? Explain 3 reasons.

Back 5

:O

Front 6

What happened in 1762? Where did it happen?

Back 6

:D

Front 7

What happened in 1847?

Back 7

D:

Front 8

When was Canada Life founded? Where?

Back 8

:0

Front 9

What happened in 1870?

Back 9

:|

Front 10

When was mutual life founded? Where?

Back 10

=)

Front 11

What happened in 1871?

Back 11

HINT, 3 THINGS HAPPENED!

Front 12

When was Confederation Life founded? Where?

Back 12

=(

Front 13

When was London Life founded? Where?

Back 13

=|

Front 14

When was SunLife founded? Where?

Back 14

;)

Front 15

What happened in 1881?

Back 15

:P

Front 16

When was North America Life founded?

Back 16

;P

Front 17

What happened in 1887?

Back 17

-_-

Front 18

When was ManuLife founded? Where?

Back 18

^_^

Front 19

What is the difference between Insurance and Gambling?

Back 19

>_<

Front 20

What are the three qualities (fundamental concepts) of the Old Equitable? What are their precautions? (explain 2)

Back 20

1. In event of epidemic or public calamity, substantial reduction in amount payable could be made temporarily

2. If premiums were inadequate, then additional payments could be required

Front 21

What are the 3 precautions of the Old Equitable?

Back 21

1. Sum payable temporarily reduced for death of plague

2. For some policyholders, the premium was increased to 1.5x

3. Payment may be annuity instead of whole payment

Front 22

6 Advantages of Life Insurance

Back 22

1

Front 23

3 Disadvantages of Life Insurance

Back 23

1

Front 24

8 aspects of the life and health insurance industry today

Back 24

1

Front 25

How is the industry market share split between the insurance companies? (explain the smaller components within GWL)

Back 25

1

Front 26

What are the 2 broadest form of insurance?

Back 26

1

Front 27

What is individual insurance? How much, in average, does a Canadian have in individual insurance?

Back 27

1

Front 28

What is Group insurance? How is the group insurance market share split between the 3 types?

Back 28

1

Front 29

What is the difference between group and individual insurance? (explain 6 aspects)

Back 29

1

Front 30

Which one's product is of better quality, group or individual insurance?

Back 30

1

Front 31

What are the 4 different types of market imperfection?

Back 31

1

Front 32

What are the 4 sub points in Market Power of Market Imperfections? Explain

Back 32

1

Front 33

What are the two types of externalities? Explain / give example

Back 33

1

Front 34

What are the 2 types of information problem? Explain

Back 34

1

Front 35

What 4 sub points are in Asymmetric Information of Information Problems of Market Imperfections? Explain

Back 35

1

Front 36

What is Free Rider Problems?

Back 36

1

Front 37

What are the 4 conditions for a perfectly competitive market?

Back 37

1

Front 38

What are the 3 objectives of pricing? What are the 3 elements of pricing an insurance policy?

Back 38

1

Front 39

What are the 8 factors affecting Life and Health insurance consumption?

Back 39

1

Front 40

What are the 10 reasons people fail to achieve financial independence? How many percent of Canadians actually achieved financial independence?

Back 40

1?

Front 41

Explain the financial planning pyramid. What are the 3 levels / layers?

Back 41

1

Front 42

In which layer of financial planning pyramid does growth opportunity belong to?

Back 42

1

Front 43

In which layer of financial planning pyramid does controllable priorities belong to?

Back 43

1

Front 44

In which layer of financial planning pyramid does non-controllable events belong to?

Back 44

1

Front 45

Which layer of the financial planning pyramid does "Life insurance" belong to?

Back 45

1

Front 46

Which layer of the financial planning pyramid does "Will/Power of Attorney" belong to?

Back 46

1

Front 47

Which layer of the financial planning pyramid does "Disability insurance" belong to?

Back 47

1

Front 48

Which layer of the financial planning pyramid does "personal health" belong to?

Back 48

1

Front 49

Which layer of the financial planning pyramid does "long term care" belong to?

Back 49

1

Front 50

Which layer of the financial planning pyramid does "critical illness" belong to?

Back 50

1

Front 51

Which layer of the financial planning pyramid does "emergency cash" belong to?

Back 51

1

Front 52

Which layer of the financial planning pyramid does "personal savings" belong to?

Back 52

1

Front 53

Which layer of the financial planning pyramid does "debt reduction" belong to?

Back 53

1

Front 54

Which layer of the financial planning pyramid does "retirement savings" belong to?

Back 54

1

Front 55

Which layer of the financial planning pyramid does "home" belong to?

Back 55

1

Front 56

Which layer of the financial planning pyramid does "education savings" belong to?

Back 56

1

Front 57

Which layer of the financial planning pyramid does "speculative investing" belong to?

Back 57

1

Front 58

Which layer of the financial planning pyramid does "market based portfolios" belong to?

Back 58

1

Front 59

State the 6 steps to financial planning process in order

Back 59

1

Front 60

What are the 2 questions that should concern every insurance purchaser?

Back 60

1

Front 61

What two components make up the amount of coverage an individual needs? Give 5 examples to the first category

Back 61

1

Front 62

What are the two kind of insurance?

Back 62

Term vs whole life

Front 63

What does R+C stands for?

Back 63

1

Front 64

What is the difference between Term Life insurance and Whole Life insurance?

Back 64

1

Front 65

What characteristics can change a term life policy into a whole life policy?

Back 65

1

Front 66

Life insurance contract is ____________. The insured can ____________________________.

Back 66

1

Front 67

What is the differences between participating policies and non-participating policies?

Back 67

1

Front 68

What are the 4 options regarding distribution of experience dividend?

Back 68

1

Front 69

What is a mutual insurance company?

Back 69

1

Front 70

What is a stock insurance company?

Back 70

1

Front 71

What is the difference between mutual insurance company and stock insurance company?

Back 71

1

Front 72

What is demuturalization? How long does it usually take? Explain the 3 benefits of demutralization

Back 72

1

Front 73

What are the 3 types of permanent insurance? Rank them in terms of price from lowest to highest

Back 73

1

Front 74

What is T-100? Why is it the cheapest permanent insurance?

Back 74

1

Front 75

When was universal life insurance started? What is the CSV in universal life insurance?

Back 75

1

Front 76

What is the difference between UL, WL, and T-100?

Back 76

1

Front 77

Explain the UL Insurance

Back 77

1

Front 78

What are the two types of COI in UL policy? What are the two options for death benefit?

Back 78

1

Front 79

List and explain the two methods of reserve calculation

Back 79

1

Front 80

What is the benefit of UL insurance reserve? What is MTAR?

Back 80

1

Front 81

What are the 5 options / riders?

Back 81

1

Front 82

What are the 3 elements of a valid contract?

Back 82

1

Front 83

How does renting compare to owning a home? Explain in terms of payment pattern, length of payment, and equity at move date

Back 83

1

Front 84

List the 5 elements that determine the cost of insurance

Back 84

1