1.	In the Life Insurance industry, policy reserves are a/an
	A)	Balance sheet liability
	B)	Balance sheet asset
	C)	Separate account item
	D)	Insurance guarantee fund payment
	E)	Income statement revenue item

2.	The term "variable" in a variable life insurance policy refers to the
	A)	policyholder's ability to vary the premiums
	B)	company's ability to vary the death benefit
	C)	variable growth rate of the cash value of the policy
	D)	insurer's ability to vary the tax status of the policy
	E)	policy holder's ability to cancel the plan

3.	The primary regulator of insurance firms is the
	A)	NAIC
	B)	McCarran-Ferguson Commission
	C)	FDIC
	D)	State insurance regulator or commission
	E)	SEC

4.	As a result of asymmetric information, insurance companies face an adverse selection problem. This means that
	A)	insurance companies are always faced with more liabilities that assets
	B)	people often change their behavior after they purchase an insurance policy
	C)	insurance companies can select which policy claims are paid when an adverse event happens
	D)	individuals that apply for insurance are those most in need of insurance
	E)	insurance companies are required to provide policies to each shareholder