1) David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $35,260. If the premiums were invested at 5 percent for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $24,400. The amount to which $1 deposited annually will accumulate in 20 years at 5 percent is $34.719. Based on this information, what is the traditional net cost per thousand per year of David's policy over the 20-year period?

2) David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $35,260. If the premiums were invested at 5 percent for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $24,400. The amount to which $1 deposited annually will accumulate in 20 years at 5 percent is $34.719. Based on this information, what is the net payment cost index per thousand per year of David's policy over the 20-year period?

3)Which of the following statements about adjustable life insurance is true?

		a) Adjustable life insurance is a whole life policy with flexible premiums. Premiums can be changed at the policyowners discretion.
		b)Adjustable life insurance is a whole life policy with fixed premiums. Although premiums can be changed, such a change requires a formal adjustment agreed to by both insurer and policyowner before it can be made. The premium remains fixed and inflexible between formal adjustments.
		c)Adjustable life insurance is a term life insurance with fixed premiums which can be changed upon mutual agreement between the policyowner and the insurer.-
		d)Adjustable life insurance is a term life insurance with flexible premiums which can be changed at the policyowners discretion