1)
_____ annuity is a special type of single premium immediate annuity issued by a life insurer and its terms are negotiated by the plaintiff, the defendant, and their attorneys.
Structured settlement
Accumulated
Surrender value
Unstructured resolution
Flexible resolution
2)
The Social Security funding burden is being borne by a shrinking sector of society because:
mortality rates have increased and longevity has declined.
birth rates have increased and death rates have decreased.
longevity has increased and birth rates have declined.
mortality and birth rates have increased.
longevity has increased and morbidity rates have declined.
3)
Homeowners policies exclude loss caused by flood due to the problem of adverse selection because:
only large insurers would be able to insure flood risk, creating unfair competition.
only those living in flood-prone areas would buy the coverage.
it encourages nonfortuitous events.
only stock insurers would insure flood risk.
only mutual insurers would insure flood risk.
4)
Which of the following statements correctly differentiate between perils and hazards?
Perils refer to the number of losses during a specified period and hazards refer to the average dollar value of a loss per occurrence.
Both perils and hazards are causes of loss; perils are tangible, hazards are intangible.
Perils are causes of loss; hazards are conditions that increase perils.
Perils are diversifiable risks; hazards are nondiversifiable risks.
Perils are consequences of losses; hazards are cause of losses
5)
The difference between the life expectancy and healthy adjusted life expectancy is a measure of the average equivalent number of years lost due to:
bad health and disability.
a bad economy.
bad health excluding disability.
death of a breadwinner in the family.
to disability excluding bad health.
6)
Which of the following life insurances is usually offered as a supplement to a separate program of group term benefits?
Group yearly renewable
Group whole
Group variable
Group universal
Group limited-payment
(1) structured settlement annuity is a special type of single premium immediate annuity issued by a life insurer and its terms are negotiated by the plaintiff, the defendant, and their attorneys.
Explanation
structured settlement annuity is a special type of single premium immediate annuity that achieves the goal. Issued by a life insurer, its terms are negotiated by the plaintiff, the defendant, their attorneys, and a structured settlement specialist. The market for structured settlement annuities is highly competitive.
(2)
The Social Security funding burden is being borne by a shrinking sector of society because:
birth rates have increased and death rates have decreased.
Explanation
The Social Security funding burden is being borne by a shrinking sector of society because birth rates have declined and longevity has increased. This trend will continue as the baby boomers move out of the work force and into retirement. Retired workers are concerned about the certainty of their benefits and future required tax rates. The current generation of taxpayers has serious doubts about the ability of the Social Security system to deliver benefits at current inflation-adjusted levels.
(3)
Homeowners policies exclude loss caused by flood due to the problem of adverse selection because:
only those living in flood-prone areas would buy the coverage.
Explanation
Homeowners policies exclude loss caused by flood for two reasons: it is considered catastrophic, and it is due to the problem of adverse selection because only those living in flood-prone areas would buy the coverage. This major gap in coverage can be filled by purchasing a flood insurance policy available through the National Flood Insurance Program (NFIP), a federal program that provides flood insurance to flood-prone communities.
(4)
Which of the following statements correctly differentiate between perils and hazards
Perils are causes of loss; hazards are conditions that increase perils.
(5)
The difference between the life expectancy and healthy adjusted life expectancy is a measure of the average equivalent number of years lost due to:
bad health and disability
(6)
Which of the following life insurances is usually offered as a supplement to a separate program of group term benefits?
Group yearly renewable
