1. In a variable life insurance policy, is the policyowner allowed to select the funds in which the policy's cash value is invested?

2. Which of the following statements concerning claims adjustment is (are) correct?

I. A public adjuster is hired on a fee basis by insurance companies to settle claims.

II. An independent adjuster is retained by the insured to negotiate the loss settlement.

A I only

B II only

C Both I and II

D. Neither I nor II

3. In a variable life insurance policy, does the policy provide a guaranteed minimum cash value?

4. Which of the following statements concerning reinsurance is (are) correct?

I. The primary insurer is responsible for paying the entire claim to the claimant and is reimbursed by the reinsurer.

II. The policyowner is notified when a reinsurance agreement is made between the primary insurer and the reinsurer.

A. I only

B. II only

C. Both I and II

D. Neither I nor II

5. Which of the following statements concerning the personal producing general agent (PPGA) system used by a life insurer is (are) correct?

I. The PPGA's main responsibility is to sell the insurer's products rather than build an agency force.

II. The PPGA may be expected to meet certain sales quotas by the insurer but may also be allowed to represent other insurers.

A I only

B. II only

C. Both I and II

D. Neither I nor II

6. Describe the differences between mutual and stock insurance companies. What is the current trend? Stock or mutual?