1)

_____ annuity is a special type of single premium immediate annuity issued by a life insurer and its terms are negotiated by the plaintiff, the defendant, and their attorneys.

Structured settlement

Accumulated

Surrender value

Unstructured resolution

Flexible resolution

2)

The Social Security funding burden is being borne by a shrinking sector of society because:

mortality rates have increased and longevity has declined.

birth rates have increased and death rates have decreased.

longevity has increased and birth rates have declined.

mortality and birth rates have increased.

longevity has increased and morbidity rates have declined.

3)

Homeowners policies exclude loss caused by flood due to the problem of adverse selection because:

only large insurers would be able to insure flood risk, creating unfair competition.

only those living in flood-prone areas would buy the coverage.

it encourages nonfortuitous events.

only stock insurers would insure flood risk.

only mutual insurers would insure flood risk.

4)

Which of the following statements correctly differentiate between perils and hazards?

Perils refer to the number of losses during a specified period and hazards refer to the average dollar value of a loss per occurrence.

Both perils and hazards are causes of loss; perils are tangible, hazards are intangible.

Perils are causes of loss; hazards are conditions that increase perils.

Perils are diversifiable risks; hazards are nondiversifiable risks.

Perils are consequences of losses; hazards are cause of losses

5)

The difference between the life expectancy and healthy adjusted life expectancy is a measure of the average equivalent number of years lost due to:

bad health and disability.

a bad economy.

bad health excluding disability.

death of a breadwinner in the family.

to disability excluding bad health.

6)

Which of the following life insurances is usually offered as a supplement to a separate program of group term benefits?

Group yearly renewable

Group whole

Group variable

Group universal

Group limited-payment