3-65 Which of the Following Did NOT Occur in the Life

question 82

Multiple Choice

3-65 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 holding 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)Policy premium increased as more households and small businesses attempted to transfer risk to insurance companies.

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Definitions:

Risk Factor

An aspect or variable associated with an increased likelihood of developing a disease or injury.

Violence

Behavior involving force intended to hurt, damage, or kill someone or something.

Civilly Committed

A legal process by which individuals with certain mental illnesses or disorders can be mandated to receive treatment or care, typically in a secure facility, without their consent, for their own well-being and for public safety.

Right to Treatment

The legal and ethical principle that individuals, especially those with mental or physical illnesses, have the right to receive appropriate and adequate medical care and treatment.