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18. Commercial general liability exposures include all of the following except: a) liability arising out of automobiles e nability arising out of the ownership and maintenance of premises products liability (d) contractual liability leaving her husband as the beneficiary of her $100,000 life insurance policy 19. Smith dies The h elect s to take the S100,000 over a ten year period and receives S11.130 per year. What part of this payment is taxable as income to the husband? (a) none of it. (b) $11,130 per year. (c) SI.130 per year d only the $100,000, which may be spread over the ten year period during which it is received. 20. Which of the following is (are) true with respect to defined benefit and defined contribution plans? (a) Employces bear the investment risk in defined contribution plans. (b) In a defined benefit plan, the benefit at retirement depends on the return on plan assets A higher proportion of the ultimate retirement benefits tend to be earned at young ages in a defined benefit plan. (e) (d) Defined benefit plans are increasing in popularity. 21. Which of the followin g features of disability insurance are intended to encourage return to work by the insured? (a) Partial disability benefits (b) Rchab benefits (c) Setting of typical benefit levels at 60%-80% of working income. (d) All of the above. 22. Which of the following is not true of Variable Universal Life (VUL)? (a) It allows the policyholder a variety of investment alternatives. (b) Investment risk is borne by the policyholder. (c) Crediting rates vary with the amount of insurance purchased. (d) Premium payments can vary from one period to the next. 23. Which of the following has not contributed to the steady shift from defined benefit to defined contribution plans since the 1970's? (a) The ERISA requirement that defined benefit plans be insured. (b) Increased administrative requirements of defined benefit plans. (c) The Labor Department rule that any overfunding of defined benefit plans is to be used to increase benefits. (d) Changes to accounting rules requiring increased financial statement disclosure relating to defined benefit plans

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