Answer the following

1) A life insurance agent persuades Jones to drop an old life insurance policy and replace it with one sold by the agents company by misrepresenting facts about Joness present policy. This is an example of

Select one:

a. rebating,

b. coercion,

c. twisting,

d. concealment,

e. patronage.

2) A married couple with only one spouse currently working outside the home plans to retire in several years. An annuity that would be particularly suitable for saving for that retirement would be

Select one:

a. a straight life annuity on the life of the working spouse,

b. a straight life annuity on the life of the nonworking spouse,

c. a deferred joint and survivor annuity,

d. an immediate joint and survivor annuity.

3)A rate-making method designed to adjust a premium to reflect the actual loss experience of an insured in a given time period is known as

Select one:

a. retrospective rating,

b. experience rating,

c. manual, or class, rating,

d. schedule rating,

e. preferred risk rating.

4) All but one of the following are subjects of state regulation of insurance:

Select one:

a. rate making and expenses,

b. minimum standards of financial solvency,

c. selection of management personnel,

d. business acquisition practices,

e. contractual provisions.

5) All of the following statements about reinsurance are true EXCEPT

Select one:

a. A reinsurer may also purchase reinsurance.

b. Reinsurance is an arrangement by which the primary insurer that initially writes the insurance transfers to another insurer part or all of the potential losses associated with such insurance.

c. The insurer transferring business to a reinsurer is called the ceding insurer.

d. The amount of insurance transferred to a reinsurer is called the net retention.