1. Which of the following is true of annuities? (a) Annuitants that die young effectively forfeit money to those who live longer. (b) In contrast to some forms of life insurance, annuities offer no tax- (c) (d) Individuals who participate in employer-sponsored retirement plans are advantaged features Annuities are especially attractive to individuals with severe medical conditions. forbidden by law to purchase annuities. covers the homeowner for water damage resulting from rain entering 2. Flood insurance (a) through a damaged roof. (b) can be purchased for building or contents, but not both. (c) is provided under a federal government program. (d) none of the above. Failure to do what an ordinary and reasonably prudent person would do under the same or similar circumstances defines: 3. (a) proximate cause (b) intervening cause. (c) assumption of risk. (d) negligence. 4. All of the following statements are true with respect to liability insurance except: (a) It is commonly referred to as third party coverage. b) The insurer is obligated to pay damages only when the insured is legally liable. (c) The injured party has a direct claim against the insurance company. (d) The insurer usually promises to defend any suits involving the type of liability insured SCANIMUR