Which of the Following Did Not Occur in the Life

question 41

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)Asset-based fees declined on products such as variable annuities and pension fund assets that were tied to equity returns.
• C)Low interest rates and harsh economic conditions caused many policyholders to terminate or surrender their policies.
• D)Policy premium increased as more households and small businesses attempted to transfer risk to insurance companies.

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Definitions:

Seiko Instruments

A company known for its precision instruments, including watches and electronic devices, emphasizing innovation and quality in manufacturing.

Reward's Plan

A structured approach to recognizing and compensating individuals or teams for their contributions and achievements.

Profit-Sharing Program

A company incentive plan in which employees receive a portion of the company's profits, enhancing motivation and loyalty.

Skill-Based Pay Plan

A compensation system that determines employees' pay rates based on their skills, knowledge, and abilities rather than their job position or title.