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.

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Definitions:

Important Crop

A key agricultural product that plays a crucial role in the economy of a region or country due to its value and usage.

Recessions

A brief era of economic contraction observed through lessened trade and industry efforts, frequently identified by a successive quarterly GDP decrease.

Consumer Spending

Consumer spending is the total amount of money spent by households and individuals on goods and services within an economy over a period of time.

Recession

A quick phase of economic reduction, where industrial and trade dynamics slow down, typically delineated by a GDP decrease in two consecutive quarters.