6. When a property-casualty insurance claim is presented years after the relevant underlying insured occurrence, it is described as ___________.

1. A long-tail loss B. A mismatched claim C. Adverse selection D. Social inflation E. The underwriting cycle

7. The McCarran-Ferguson Act:

1. designated the Federal Reserve as the primary regulator of all insurance companies. B. designated the SEC as the primary regulator of insurance companies. C. has served to keep the primary regulation of all insurance companies at the state level. D. initiated variable life insurance products. E. instituted capital regulations for insurance companies.

8. Policy reserves are a(n)

1. balance sheet asset. B. balance sheet liability. C. income statement revenue item. D. insurance guarantee fund payment. E. separate account item.

9. ______________________ is in essence pure life insurance.

1. Endowment life B. Term life C. Universal life D. Variable life E. Whole life

10. It is hard to predict loss exposure from hurricane damage for a specific area because that peril is a ____________________.

1. high severity, high frequency event B. high severity, low frequency event C. low severity, high frequency event D. low severity, low frequency event