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NEW QUESTION: 1
The subaccounts into which Mr. Sumrisk directed his variable life premiums have earned a 6% return. If the assumed interest rate was 7%:
I. the cash value of his policy increased.
II. the death benefit associated with his policy decreased.
III. the cash value of his policy decreased.
IV. the death benefit associated with his policy increased.
A. both I and II
B. both I and IV
C. both III and IV
D. both II and III
Answer: A
Explanation:
Explanation/Reference:
Explanation: If Mr. Sumrisk's subaccounts earned a 6% return and the assumed interest rate was 7%, then the cash value of his policy increased, but the death benefit associated with his policy decreased. The cash value of the policy increases when the separate account earns a positive return, regardless of the size of that return. The death benefit, however, depends on both the return earned on the separate account and the assumed interest rate. Since the separate account returned less, in this case, than the assumed interest rate, the death benefit decreased.
NEW QUESTION: 2
A. Option E
B. Option C
C. Option B
D. Option D
E. Option A
Answer: B,E
NEW QUESTION: 3
What are HP Lifecycle Services?
A. a multi-year contract that includes proactive security and management reporting
B. a portfolio of services that simplify device lifecycle management
C. a contract under which you get a new notebook every 3 years
D. a portfolio of services centered around device security and sanitation
Answer: B
NEW QUESTION: 4
Which of the following situations justifies the release of an interim report to management and the board?
- The internal auditor is convinced that the audit observations require immediate attention. - The internal auditor would like to communicate a change in engagement scope for the activity under review. - The internal auditor notes that the engagement may extend over a longer time period. - The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.
A. 1, 2, and 3 only.
B. 2 and 3 only.
C. 1 and 3 only.
D. 2, 3, and 4 only.
Answer: A
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