6.	An annuity contract differs from an insurance contract because
	A)	the insurance company has no control over the payout on an annuity, but does have control over insurance premiums.
	B)	the premium collected on an insurance policy remains constant, while the payments on an annuity are always variable.
	C)	an annuity is an asset to the insurance company, while an insurance policy is a liability.
	D)	an insurance policy builds up to an eventual payout of a lump sum, while an annuity begins with a lump sum and has subsequent payouts.
	E)	insurance policy premiums are taxable income to the insurance company, while the payouts on annuities are tax deductible to the company.

7.	Policy reserves to a life insurance company represent
	A)	loans made to policyholders based on the cash value of the policy
	B)	the value of expected future payouts on existing policies
	C)	a reserve set aside for unexpected changes in the market value of assets
	D)	a form of reinsurance that helps to reduce risk of the policies held
	E)	assets that are unable to be invested because they have to be "reserved"

8.	In the life insurance industry, the largest asset category is _____ and the largest liability category is _____.
	A)	Bonds, separate account items
	B)	Separate account items, current policy claims
	C)	Bonds, policy reserves
	D)	Policy reserves, mortgage loans
	E)	Common stock, dividend reserve

9.	The most important legislation affecting the regulation of life insurance companies prior to 1999 was the
	A)	McCarran-Ferguson Act
	B)	McFadden Act
	C)	Investment Company Act
	D)	SEC Act
	E)	Insurance Freedom Act

10.	Insurance companies, commercial banks and investment banks may now affiliate with each other and engage in similar lines of business. These powers were granted by the
	A)	Glass-Steagall Act
	B)	Depository Deregulation Act
	C)	Garn-St Germain Act
	D)	Riegle-Neal Act
	E)	Financial Services Modernization Act of 1999