1a. Which of the following is true about insurer capital?

a Capital is the difference between assets and liabilities.

b There is no regulatory requirement on how much capital an insurer should hold.

c An insurer is said to be insolvent if its capital remains positive.

d Capital only shows up on SAP balance sheet.

1b. A contingent beneficiary in a life insurance policy has the right to

a. receive the policy proceeds if the primary beneficiary dies before the insured.

b. share the policy proceeds with the estate of the policyowner.

c. change the beneficiary designation under specified circumstances.

d. exercise policy rights if the insured is incapacitated.