Which of the following statements is $($are$)$ true conceming settlement options?

I. A straight life annuity provides the least amount of periodic income of all the life income options.

II$.$ The interest only option is the most often used settlement option.

A$)$ Ionly

B$)$ II only

C$)$ both I and II

D$)$ neither I nor II

An insurer denied payment of the fill face value of a life insurance policy to the beneficiary. The face value of the policy was $$500,000$ and the beneficiary received only $$470,000.$ What could explain the reduced payment amount?

A$)$ entire contract clause

B$)$ the insured had an outstanding policy loan at the time of his death

C$)$ the insured misstated his age, representing himself as older than he really was when the policy was issued

D$)$ both B and C could explain the payment of less than fill face value

Which of the following statements about life insurance policy loans is $($are$)$ true?

I. Interest is not required on a life insurance policy loan, as the policyholder is borrowing his or her own money.

II$.$ Policy loans must be repaid within $3$ years or the policy will lapse.

A$)$ I only

B$)$ II only

C$)$ both I and II

D$)$ neither I nor II

Which of the following statements is $($are$)$ false with respect to annuities?

I. The findamental purpose of annuities is to replace lost income in case of premature death.

II$.$ Annuily payments will be higher if the annuity is funded with life insurance cash value rather than outside funds.

A$)$ Ionly

B$)$ II only

C$)$ both Iand II

D$)$ neither Inor II