1. The following type(s) of life insurance policies do not have a savings feature:

A) Term life

B) Whole life

C) Variable life

D) Universal life

E) Both variable life and universal life

2. In property and casualty insurance the combined ratio is equal to ________ divided by total premiums written.

A) the sum of the loss ratio plus loss adjustment expenses

B) the sum of the loss ratio plus the expense ratio

C) the operating ratio minus dividends paid to policyholders

D) the nominal ratio plus the real ratio

E) 1 minus the operating ratio

3. The primary regulator of insurance firms is the

A) NAIC.

B) McCarran-Ferguson Commission.

C) FDIC.

D) state insurance regulator.

E) SEC.

4. A best efforts offering is one in which

A) the underwriter bears the risk of an unsuccessful offering.

B) the bid-ask spread is exceptionally high, but the investment banker does his best to sell the issue anyway.

C) the investment banker acts as a principal for the issuer.

D) the investment banker acts only as a distribution agent.

E) the issue can only be privately placed.