1. Additional Living Expense payments will not exceed 20% of Coverage A limits. True or False 2. Losses to all the following are covered except: A. Shed rented to a tenant, to store furniture B. Detached garage used to operate a lawnmower repair shop C. Garage rented to the neighbor to store an antique automobile D. Basement used as an office for insured's bookkeeping business E. Garage (attached) rented to tenant to store fishing boat 3. A Fire Department Service Charge for protection of covered property from a Peril Insured Against is covered when the property is located within the limits of the city furnishing the fire department response. True or False 4. Joe Smith is a carpenter and has saved several hundred 8-foot two-by-fours left over from various job sites. He has the lumber stored under a tarp in the backyard of the residence premises shown in the Declarations. Joe has no specific plans to use the lumber. The lumber is covered under Coverage A. True or False 5. If a picture falls from a wall and damages an expensive statue, coverage for the statue would: A. Apply under the falling object peril B. Not apply, not an insured peril C. Apply under the collapse peril D. Apply under coverage C 6. Resulting Additional Living Expenses can be paid for up to two weeks if use of the premises is prohibited by civil authorities because of direct damage to a neighboring premises by a Peril Insured Against. True or False 7. The National Weather Bureau issued a hurricane warning affecting the insured premises on July 18 th. The insured removed antique furniture and stored it in a warehouse 50 miles inland. The furniture was damaged by flood waters on August 22nd. The damage to the furniture is covered. True or False 8. Judy Howard owned a home at 2500 Mocking Bird Lane. She sold the home on June 5 and began moving her personal property to a new residence. On June 27 a tornado damaged the personal property at the new location. Judy's policy on the Mocking Bird Lane home was still in force. She did not have a policy in force for the new location. Coverage up to the Coverage B limits applies at the new location True or False 9. The insured has a duty to make reasonable and necessary repairs to protect covered property from further damage after a loss event. True or False 10. The insureds' residence premises suffered damage to floor coverings, baseboards, drywall, and personal property following exceptionally heavy rains that caused a nearby creek to rise and water to enter the home. While the insureds were out of their home due to the flooding, looters stole lawn equipment from inside the detached garage. What items would be covered? Select the single best answer: A. Stolen lawn equipment B. Coverage A items damaged by rising water D. Nothing is covered because it all resulted from rising water Part II. Briefly answer each of the following questions. Keep your answers under 20 words each. 1. Will a fixed indexed annuity based on the S\&P 500 index experience lower gains than a variable annuity with funds invested in a portfolio that matches the S\&P 500? 1.Will a fixed indexed annuity based on the S\&P 500 index experience lower gains than a variable annuity with funds invested in a portfolio that matches the S\&P 500? 2. What is one difference between fixed annuities and variable annuities? 3.Deshawna is 65 years old. She paid $240,000 for an immediate anuuity of $2,000 a month for her lifetime. The contract does not provide for any refunds. According to the Internal Revenue Service regulations, her life expectancy is 85 (20 years of the annuity). She receives 12 monthly payments in the first year of her contract. How much of her income from the annuity is taxable for that year? 4.Hassan is 45 years old. You are a life insurance producer, and Hassan has indicated that if he dies prematurely, he wants coverage that will replace the portion of his income needed to support his family until he would have retired (at age 65). He expects his average annual earnings will be $64,000, of which he expects half will be needed to support his family. He agrees that an annual discount rate of 5% is appropriate. How much insurance does this suggest for Hassan? 5. What type of household is likely to have the least need for life insurance? 6. What is the period during which a surviving spouse is ineligible for Social Security benefits called? 7. Is the continuing annual premium after conversion of a term insurance policy to permanent (cash-value) coverage lower if an original-age conversion is used than if an attained-age conversion is used? 8. Do most term life insurance policies require evidence of insurability before conversion? 9. What risk is the insurer pooling when selling life annuities? 10. What are the premiums for a variable annuity used to purchase during the funding period