Which of the following is true regarding a market value adjusted annuity?

A. It provides a level benefit payment

B. The owner is guaranteed a fixed interest rate for a specific period of time

C. The insurer bears all the market risk of changing interest rates

D. There are no penalties for a premature surrender of the annuity

Answer: B. The owner is guaranteed a fixed interest rate for a specific period of time

Annuities

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

In insurance,

In insurance, A) contracts made by the agent are considered to be contracts of the producer B) contracts made by the principal are considered to be contracts of the agent C) the insurer is the principal and the producer is the agent D) the producer is the principal and the insurer is the agent Answer: the insurer is the principal and the producer is the agent

Which is generally true regarding insureds who have been classified as preferred risks

Which is generally true regarding insureds who have been classified as preferred risks A) They can borrow higher amounts off of their policies. B) They can decide when to pay their monthly premiums. C) They keep a higher percentage of any interest earned on their policies. D) Their premiums are lower. Answer: Their premiums are lower

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A domestic insurer issuing variable contracts must establish one or more
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Which nonforfeiture option provides coverage for the longest period of time?
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A securities license is required for a life insurance producer to sell
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called
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Items stipulated in the contract that the insurer will not provide coverage for are found in the
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