ALU 202 PRACTICE TEST REVIEW QUESTIONS ANSWERED
CORRECTLY LATEST UPDATE 2026
Annuity life tables - Answers A type of insured lives life table tabulating the
mortality rights of individuals who have purchased annuities. Consider to represent
the lowest mortality rates among insured lives.
Basic life tables - Answers Also known as select and ultimate tables. A type of
insured lives life table tabulating the death rates for individuals who purchased
insurance at standard or better (preferred) right. Subdivided buy tobacco use and by
select an ultimate periods.
Cohort (generation) life table - Answers Type of life table tabulating the year to year
death rates for a group of individuals born around the same time (for example same
year)
Period (Current) Life tables - Answers A life table tabulating death rates for a
particular period of time for individuals of different ages at the time mortality data
was collected (different birth cohorts)
Standard and ordinary life tables - Answers Aggregate insured lives life table in
which select and ultimate mortality rates are combined to arrive at the aggregate death
rates for each age hey Joe, that's ignoring most of the effect of selection resulting
from underwriting. Death rates in such a table are somewhat higher (more
conservative) then those in the basic select an ultimate tables
Ultimate period - Answers The period after the Select Period during which the effect
of the underwriting is assumed to no longer be effective in selecting standard or better
risks from the entire pool of insured persons. Often consider to be the. Beyond 20 to
25 years after underwriting
Select period - Answers The period from life insurance policy issue to the time at
which the effect of underwriting has been assume to no longer be effective in
selecting standard or better rest from among the entire pool of insured persons. Often
considered to be about 20 to 25 years.
Primary focus of multi life underwriting - Answers The avoidance of anti-selection
Facultative reinsurance - Answers Reinsurance in which the risk is offered by a direct
writer to a reinsurer for underwriting approval. The reinsurer has the option to except,
rate, or decline the offering.
, Coinsurance (reinsurance) - Answers A method of reinsurance under which the
assuming company receives a proportionate share of all of the risks and cash flows of
the policy. The reinsurer receives its share of the premiums and benefits, and sets up
its share of the reserves.
Quota share reinsurance - Answers A form of reinsurance in which premiums and
losses are shared proportionately between the ceding company and the reinsurer.
Under this type of reinsurance, the same percentage applies to all reinsured policies
and in a given class of business.
Excess of retention - Answers A type of reinsurance in which a ceding company
establishes a dollar amount retention limit and a reinsurer agrees to the same amounts
over this limit, up to the reinsurer's automatic binding limit.
Dodd Frank act - Answers Passed in 2009, included provisions that created a federal
insurance office (FIO) and the treasury department. It was a mandate to protect the
US financial system from systemic risk presented by financial institutions deemed too
big to fail
Privacy rule - Answers In the US. Major goal of this legal action is to assure that
individuals health information is properly protected while allowing the flow of health
information needed to provide and promote high-quality healthcare and to protect the
public health and well-being. Addressed the use and disclosure of individuals health
information called "protected health information"
PIPEDA, personal information protection and electronic documents Act - Answers In
Canada, establish his ground rules for how private sector or organizations can collect,
use or disclose personal information in the course of commercial activities
Consumer reporting act (CRA) - Answers In Canada, plays a significant role in
regulating the collection of information in the underwriting process at the provincial
level.
USA patriot act - Answers Was signed into law by President Bush in response to the
September 11, 2001 terrorist attacks. It enhances the authority of the US law
enforcement for the stated purpose of investigating and preempting potential terrorist
acts against the United States.
McCarran-Ferguson Act - Answers In the US, adopted in 1945 after extended debate
over the jurisdiction of state and federal government and regulating the life insurance
industry. The central point of the act was that the continued regulation and taxation of
insurance by states is in the public's best interest.
CORRECTLY LATEST UPDATE 2026
Annuity life tables - Answers A type of insured lives life table tabulating the
mortality rights of individuals who have purchased annuities. Consider to represent
the lowest mortality rates among insured lives.
Basic life tables - Answers Also known as select and ultimate tables. A type of
insured lives life table tabulating the death rates for individuals who purchased
insurance at standard or better (preferred) right. Subdivided buy tobacco use and by
select an ultimate periods.
Cohort (generation) life table - Answers Type of life table tabulating the year to year
death rates for a group of individuals born around the same time (for example same
year)
Period (Current) Life tables - Answers A life table tabulating death rates for a
particular period of time for individuals of different ages at the time mortality data
was collected (different birth cohorts)
Standard and ordinary life tables - Answers Aggregate insured lives life table in
which select and ultimate mortality rates are combined to arrive at the aggregate death
rates for each age hey Joe, that's ignoring most of the effect of selection resulting
from underwriting. Death rates in such a table are somewhat higher (more
conservative) then those in the basic select an ultimate tables
Ultimate period - Answers The period after the Select Period during which the effect
of the underwriting is assumed to no longer be effective in selecting standard or better
risks from the entire pool of insured persons. Often consider to be the. Beyond 20 to
25 years after underwriting
Select period - Answers The period from life insurance policy issue to the time at
which the effect of underwriting has been assume to no longer be effective in
selecting standard or better rest from among the entire pool of insured persons. Often
considered to be about 20 to 25 years.
Primary focus of multi life underwriting - Answers The avoidance of anti-selection
Facultative reinsurance - Answers Reinsurance in which the risk is offered by a direct
writer to a reinsurer for underwriting approval. The reinsurer has the option to except,
rate, or decline the offering.
, Coinsurance (reinsurance) - Answers A method of reinsurance under which the
assuming company receives a proportionate share of all of the risks and cash flows of
the policy. The reinsurer receives its share of the premiums and benefits, and sets up
its share of the reserves.
Quota share reinsurance - Answers A form of reinsurance in which premiums and
losses are shared proportionately between the ceding company and the reinsurer.
Under this type of reinsurance, the same percentage applies to all reinsured policies
and in a given class of business.
Excess of retention - Answers A type of reinsurance in which a ceding company
establishes a dollar amount retention limit and a reinsurer agrees to the same amounts
over this limit, up to the reinsurer's automatic binding limit.
Dodd Frank act - Answers Passed in 2009, included provisions that created a federal
insurance office (FIO) and the treasury department. It was a mandate to protect the
US financial system from systemic risk presented by financial institutions deemed too
big to fail
Privacy rule - Answers In the US. Major goal of this legal action is to assure that
individuals health information is properly protected while allowing the flow of health
information needed to provide and promote high-quality healthcare and to protect the
public health and well-being. Addressed the use and disclosure of individuals health
information called "protected health information"
PIPEDA, personal information protection and electronic documents Act - Answers In
Canada, establish his ground rules for how private sector or organizations can collect,
use or disclose personal information in the course of commercial activities
Consumer reporting act (CRA) - Answers In Canada, plays a significant role in
regulating the collection of information in the underwriting process at the provincial
level.
USA patriot act - Answers Was signed into law by President Bush in response to the
September 11, 2001 terrorist attacks. It enhances the authority of the US law
enforcement for the stated purpose of investigating and preempting potential terrorist
acts against the United States.
McCarran-Ferguson Act - Answers In the US, adopted in 1945 after extended debate
over the jurisdiction of state and federal government and regulating the life insurance
industry. The central point of the act was that the continued regulation and taxation of
insurance by states is in the public's best interest.
