AIAF 114 - CHAPTER #3 EXAM
QUESTIONS AND ANSWERS
Unit-linked insurance products - ANSWER-Insurance products under which the
investment performance of a segregated bundle of assets is passed through to the
policyowners.
Unit investment trust - ANSWER-A regulated investment company that issues a fixed
number of shares representing an investment in a specific bundle of securities
Schedule F in the NAIC Annual Statement for LIFE insurers concerns - ANSWER-
Contested and compromised claims
Premiums are recognized as revenue when due for - ANSWER-Traditional life and
annuity contracts
Which one of the following is an asset on the balance sheet of life insurers but not PC
insurers - ANSWER-Contract loans
Changes in life insurers' liability for future policy benefits are - ANSWER-Recognized as
expenses in the period in which the changes occur
Which one of the following applies separate accounts - ANSWER-They must be
registered as securities
Unit Investment trusts - ANSWER-Back products that are both insurance policies and
registered trusts
Life insurers record policy loans on which one of the following - ANSWER-Asset side of
the balance sheet
Under SAP, life insurers - ANSWER-Must file a separate account annual statement with
the state regulator
The increase in aggregate reserves for life and accident and health contracts in the
Annual Statement Summary of Operations - ANSWER-Includes an increase in reserves
because of a deficiency in the reserves reported in a prior period
Policy Loan - ANSWER-A loan by an insurer to a policyholder with the cash value of the
policyholder's life insurance policy as collateral.
Mortality rates - ANSWER-Probabilities of death at specific ages
QUESTIONS AND ANSWERS
Unit-linked insurance products - ANSWER-Insurance products under which the
investment performance of a segregated bundle of assets is passed through to the
policyowners.
Unit investment trust - ANSWER-A regulated investment company that issues a fixed
number of shares representing an investment in a specific bundle of securities
Schedule F in the NAIC Annual Statement for LIFE insurers concerns - ANSWER-
Contested and compromised claims
Premiums are recognized as revenue when due for - ANSWER-Traditional life and
annuity contracts
Which one of the following is an asset on the balance sheet of life insurers but not PC
insurers - ANSWER-Contract loans
Changes in life insurers' liability for future policy benefits are - ANSWER-Recognized as
expenses in the period in which the changes occur
Which one of the following applies separate accounts - ANSWER-They must be
registered as securities
Unit Investment trusts - ANSWER-Back products that are both insurance policies and
registered trusts
Life insurers record policy loans on which one of the following - ANSWER-Asset side of
the balance sheet
Under SAP, life insurers - ANSWER-Must file a separate account annual statement with
the state regulator
The increase in aggregate reserves for life and accident and health contracts in the
Annual Statement Summary of Operations - ANSWER-Includes an increase in reserves
because of a deficiency in the reserves reported in a prior period
Policy Loan - ANSWER-A loan by an insurer to a policyholder with the cash value of the
policyholder's life insurance policy as collateral.
Mortality rates - ANSWER-Probabilities of death at specific ages
