1. Insurance companies utilize the law of large numbers to reduce the chance of loss for their insureds. true oR FALSE
2. Which of the following is not a peril?
a) car collision
b) vandalism
c) earthquake
d) faulty wiring
e) none of the above are correct, on other words: all of the above are perils
3. From an annuitant's perspective, tax deferral is beneficial because :
a) current taxes are increased in return for reduced taxes later
b) money can be invested that would ordinarily be paid in current income taxes
c) tax rates in the future are guaranteed to be lower
d) tax policy varies, there may be no tax on retirement income in the future