Question 1

One factor in premium determination is the expenses of the:

Options :

A : Producer

B : Insurer

C : Policy beneficiary

D : Policy owner

Answer: B

Question 2

Who normally receives dividends in a stock insurance company?

Options :

A : Only members of the board of directors

B : Shareholders

C : Beneficiaries

D : Producers

Answer: B

Question 3

Who normally receives dividends in a stock insurance company?

Options :

A : Only members of the board of directors

B : Shareholders

C : Beneficiaries

D : Producers

Answer: B

Question 4

All of the following are common underwriting factors used by life insurance companies EXCEPT:

Options :

A : Ethnic heritage

B : Amount of insurance applied for

C : Driving record

D : Family health history

Answer: A

Question 5

The annual addition to an employee's account in a qualified retirement plan:

Options :

A : Can be any amount as determined by the employer from year to year

B : Must be the same dollar amount for every full-time employee

C : Cannot exceed maximum limits set by the Internal Revenue Service

D : Usually reflects the employee-s individual work performance each year

Answer: C

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