Final Review

 

Chapter 8

Read Term Life insurance section and Whole life section

learn the difference

Whole life has a savings aspect

Term life is for a set term and then is re-applied

 

Chapter 10

            Main focus of the test is on this chapter

            396 -399 terms know them

            401 HO-1, HO-2, HO-3, HO-4 renters, HO-6 condos

            Sections 1 and 2 of Perils

                        What perils go to which section?

            410-415 terms in margins of the book

            Policy limits for the Parts

           

Chapter 11

            441-442 ways to invest

            Stocks, Bonds, Preferreds and Convertibles, Mutual Funds, Real Estate, Commodities, Futures, Options

            Markets:

                        Primary

                        Secondary

            Bull versus Bear

            456 know terms

 

Chapter 12

            498 terms for investing

            513-515 Types of stock

                        Blue-chip stocks – stocks generally issued by companies expected to provide an uninterrupted stream of dividends and good long-term growth prospects

                        Growth stocks – stock whose earnings and market price have increased over time at a rate well above average

                        Tech stocks – stock that represent the technology sector

                        Income stock – stock whose chief appeal is the dividends it pays

                        Speculative – stock that is purchased on little more than the hope that its price /share will increase due to some new information

                        Cyclical stock – stock that is purchased in recovery or expansion stage and sold in recession or depression stages

                        Defensive stock – stock that exhibit price movements contrary to movements in the business cycle (i.e. Utilities)

                        Mid-cap stock – stock whose total market value falls between 1 and 5 billion

                        Small-cap stock – stock whose total market value falls between 0 and 1 billion

 

            Types of Bonds

                        Treasury – the US treasury

                        Agency – Freddie mac

                        Municipal – Local and/or state government

                        Corporate – GM, GE, Reynolds, etc

 

Chapter 13

555      Open investments companies – company that can issue unlimited # of shares

Closed investments companies – company that can only issue a limited # o         of shares

            560 Load, no-load, 12-1 fee

            566 Types of Mutual Funds

                        Growth

                        Aggressive Growth

                        Value

                        Equity-Income

                        Balanced

                        Growth-and-Income

                        Bond

                        Money market

                        Index

                        Socially Responsible

                        International

                        Asset Allocation