A substantial investment is defined as any investment comprising more than 15 percent of an enterprise’s voting shares or greater than 35 percent of its equity.

A substantial investment is defined as any investment comprising more than 15 percent of an enterprise’s voting shares or greater than 35 percent of its equity.A . TrueB . FalseView AnswerAnswer: B

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What are designed primarily to accumulate a fund for eventual liquidation via annuitization, so the savings element is predominant?

What are designed primarily to accumulate a fund for eventual liquidation via annuitization, so the savings element is predominant?A . Variable annuitiesB . Deferred annuitiesC . Immediate annuitiesD . None of the aboveView AnswerAnswer: B

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The value of the capital stock shown in the stock life insurance company’s statutory basis balance sheet equals the par value per share multiplied by the number of issued shares.

The value of the capital stock shown in the stock life insurance company’s statutory basis balance sheet equals the par value per share multiplied by the number of issued shares. In the case of no-par stock:A . The stated value per share is used (or liquidation value, for no-par preferred...

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Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:

Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:A . Rating premiumsB . Direct premiumsC . Assumed reinsurance premiumsD . Ceded reinsurance premiumsView AnswerAnswer: D

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When policy periods expire, the premiums written are earned and are recognized as:

When policy periods expire, the premiums written are earned and are recognized as:A . LiabilitiesB . ExpensesC . RevenuesD . None of the aboveView AnswerAnswer: C

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Which projection method uses paid losses plus reserves on outstanding claims?

Which projection method uses paid losses plus reserves on outstanding claims?A . Average lossesB . Loss ratioC . Incurred lossD . None of the aboveView AnswerAnswer: C

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The SEC rules clarify that management’s assessment and report is limited to internal control over financial reporting.

The SEC rules clarify that management’s assessment and report is limited to internal control over financial reporting.A . TrueB . FalseView AnswerAnswer: A

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The magnitude of the variable annuity benefits provided by a deferred annuity depends on the size of the account value at the end of the accumulation phase.

The magnitude of the variable annuity benefits provided by a deferred annuity depends on the size of the account value at the end of the accumulation phase.A . TrueB . FalseView AnswerAnswer: B

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Audit risk consists of:

Audit risk consists of:A . Risk of material misstatementB . detection of riskC . Both A & BD . Neither A nor BView AnswerAnswer: C

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Structured settlements are agreements characterized by the periodic payment of fixed amounts to a claimant in connection with the settlement of a legal claim. Such payments may last for the lifetime of the payee or they may be for a particular period of time, depending upon the terms of the settlement.

Structured settlements are agreements characterized by the periodic payment of fixed amounts to a claimant in connection with the settlement of a legal claim. Such payments may last for the lifetime of the payee or they may be for a particular period of time, depending upon the terms of the...

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