5. Variable life insurance contracts (a) we subject to SEC regulation rather than regulation by the individual states. (b) are considered Ile insurance and are exempt from secuffeelint9lAstion. (c) are also referred to as adjustable life insurance contracts. (0) are considered securities and can only be sold by licensed securities agents (s) none of the above. 8 The grace period clause (a) Is designed to avoid unintentional lapses. (b) provides that any premium in default will be paid out of the existing cash values (c) permits the insured to purchase insurance which he could not otherwise afford. (d) must be taken out by the Insured at the lime the policy is taken out or it is not applicable (e) none of the above 7 The interest option Is best suited to a situation (a) where the need for monthly income is great. (b) where a widow needs a monthly income for the rest of her life (c) where the proceeds will not be needed until a later time (d) where immediate needs are of greatest importance. (e) none of the above. 8. The specific requirements regarding evidence of insurability imposed on the insured under the reinstatement clause are (a) designed to offset the cost of reissuing the policy (b) Intended to avoid loss of investment income (c) necessary to prevent adverse selection. (d) required by the changing investment income over time. (e) none of the above 9. Which of the following is not one of the standard settlement options? (a) life income with period certain (b) installments for a fixed period (c) interest (d) cash value (e) installments of a fixed amount. 10. To reinstate a policy that has lapsed. the insured must: (a) pay all past due premiums plus interest (b) provide evidence of insurability. (c) reinstate the policy within 5 years. (d) pay or reinstate any indebtedness under the policy. (e) all of the above. 5. Variable life insurance contracts (a) we subject to SEC regulation rather than regulation by the individual states. (b) are considered Ile insurance and are exempt from secuffeelint9lAstion. (c) are also referred to as adjustable life insurance contracts. (0) are considered securities and can only be sold by licensed securities agents (s) none of the above. 8 The grace period clause (a) Is designed to avoid unintentional lapses. (b) provides that any premium in default will be paid out of the existing cash values (c) permits the insured to purchase insurance which he could not otherwise afford. (d) must be taken out by the Insured at the lime the policy is taken out or it is not applicable (e) none of the above 7 The interest option Is best suited to a situation (a) where the need for monthly income is great. (b) where a widow needs a monthly income for the rest of her life (c) where the proceeds will not be needed until a later time (d) where immediate needs are of greatest importance. (e) none of the above. 8. The specific requirements regarding evidence of insurability imposed on the insured under the reinstatement clause are (a) designed to offset the cost of reissuing the policy (b) Intended to avoid loss of investment income (c) necessary to prevent adverse selection. (d) required by the changing investment income over time. (e) none of the above 9. Which of the following is not one of the standard settlement options? (a) life income with period certain (b) installments for a fixed period (c) interest (d) cash value (e) installments of a fixed amount. 10. To reinstate a policy that has lapsed. the insured must: (a) pay all past due premiums plus interest (b) provide evidence of insurability. (c) reinstate the policy within 5 years. (d) pay or reinstate any indebtedness under the policy. (e) all of the above