Which of the Following Did NOT Occur in the Life

question 17

Multiple Choice

Which of the following did NOT occur in the life insurance industry during the most recent financial crisis?

• A)Low equity values reduced asset-based fees on separate account assets.
• B)Losses were incurred on holdings of commercial mortgage-backed securities and commercial loans.
• C)Asset-based fees declined on products such as variable annuities and pension fund assets that were tied to equity returns.
• D)Low interest rates and harsh economic conditions caused many policyholders to terminate or surrender their policies.
• E)Historically low interest rates caused increased demand for whole life policies.

---

Definitions:

Legal Positivism

A school of thought in law that holds that the validity of a law is not related to its morality but on its sources and promulgation.

French Civil Code

A foundational legal document in France, also known as the Napoleonic Code, which influences civil law systems worldwide.

Justinian's Code

A collection of laws and legal interpretations developed under the direction of the Byzantine emperor Justinian I in the 6th century.

Civil Law System

A legal system based on written codes or statutes, as opposed to common law, which is based on precedent and judicial decisions.