1. Robert is reviewing an insurance policy contract, which contains a section that details important definitions and endorsements, or amendments to the basic policy, in addition to exclusions. Why do insurance companies include a section for exclusions in their policy documents?

a.) The exclusion section is required in order to list only those potential losses that are uninsurable. b.) The exclusion section includes statements made by the insured that may not be included in an investigation of a claim. c.) Insurance companies want to avoid paying claims on most losses. d.) Certain perils are excluded because the insurance company did not contemplate covering them when determining the premium. e.) State regulatory agencies generally require that certain exclusions be included in every policy.

2. Which of the following statements is false?

a.) Federal law does not require those selling a group annuity contract with multiple investment choices including equity funds to have a securities license or to provide a prospectus if it is sold to a qualified plan. b.) If you are licensed to sell life insurance and fixed annuities in your own state, you can sell those same products in all states except New York without additional licensing. c.) In almost all states, it is illegal to rebate commissions. d.) The minimum licensing requirements in most states for selling variable annuity contracts are proper state life and annuity licenses and a Series 6 securities license. 25.) Currently, there is no federal legislation covering licensing or regulation of capital requirements for insurance companies.