1. Which of the following statement is False regarding the NAIC?
a) NAIC stands for national Association of insurance Commissioners
b) NAIC has no legal authority to force the states to adopt their recommendations
c) periodically to discuss industry problems that might require legislation or regulation
d) The NAIC has drafted model laws in various areas that were adopted by the states
e) None of the above
2. Sam’s stereo was destroyed by a fire. The stereo cost $ 2200 when it was purchased, but a similar new stereo new costs $2400. Assuming the stereo was 50 percent depreciated,what is the actual cash value of SAm’s loss?
a) $2200
b) $2400
c) $1200
d) $0
3. Which of the following is not a reason that individuals purchase life insurance policies?
a) to support the financial needs of their dependents
b) to help pay federal estate taxes
c) to pay for the last medical expenses, body disposals, and personal debts
d) to leave money for their favorite charities
e) none of the above in other words, all of the above are reasons individuals buy life insurance policies.
4. The variable annuity :
a) pays a fixed dollar amount for a variable length of time.
b) Pays an annuity for a variable number of people
c) Overcomes the problem of inflation and the loss of purchasing power
d) Accepts variable amounts of deposits on a periodic basis during the accumulation period.