3. Contributory plans involve Select one:

1. a requirement that employees contribute a part of the cost of the plan,
2. a formula that specifically defines the amount that an employer must contribute,
3. less paperwork than noncontributory plans because defined benefit plans involve more actuarial projections,
4. only retirement related plans and never other forms of employee benefits.

3. Retirement plans that are designed for use by self-employed individuals are Select one:

1. Section 403(b) plans,
2. Keogh plans,
3. thrift plan,
4. SIMPLEs.

3. If your insurer becomes insolvent, you may usually successfully make a claim against Select one:

1. an agency of the federal government,
2. an agency of the state government in which the insurer is chartered,
3. a guaranty fund supported by insurers operating in your state,
4. the insurance agent who sold you the policy,
5. the claims adjusting firm handling your case.

3. Retirement plans that are designed for use by self-employed individuals are Select one:

1. Section 403(b) plans,
2. Keogh plans,
3. thrift plan,
4. SIMPLEs.

3. Term insurance contracts generally do not have Select one:

1. a clearly defined termination date,
2. lower premiums than other forms of insurance,
3. the option to convert the policy to another form of insurance
4. cash values.

22. The main difference between pricing insurance and pricing other commodities is Select one:

1. in insurance, the future loss is unknown and must be estimated,
2. in insurance, prices are strictly regulated,
3. in insurance, pricing is done scientifically,
4. all three are correct,
5. none of these are correct.

Which of the following is not a true statement regarding the income taxation of annuities? Select one:

1. Investment earnings are taxed when withdrawn and not when accrued,
2. Dividends on participating policies are not taxed when received,
3. The exclusion ratio represents the amount of a benefit payment that can be excluded from taxable income,
4. A penalty tax of 10 percent is charged for excess accumulations within the annuity if withdrawals are not started by age 59.5.

22. Which of the following was a Supreme Court decision that held insurance was not commerce and hence not subject to federal regulation?

Select one:

1. the SEUA case,
2. Paul v. Virginia,
3. the Appleton Rule,
4. American Indemnity v. Hobbs,
5. United States v. Investors Diversified Services.