1.

1. In life insurance, what are trailing commissions?

	a.	Commissions on life insurance policies after the first year.
	b.	Commissions on only term life insurance policies.
	c.	Commissions on only permanent life insurance policies.
	d.	Commissions on life insurance policies after an insured reaches projected life expectancy.
	e.	Commissions on life insurance policies following any policy change increasing the death benefit.

2.

Some form of permanent life insurance, but virtually never term insurance, is most appropriate for which situation?

	a.	Providing estate liquidity
	b.	To fund business buy/sell agreements
	c.	To protect the financial security of young children whose parents are in their early 20s.
	d.	To pay off mortgage loan principal if the borrow dies still owing money to the lender.
	e.	Both a and b.

3.

About what percent of non-elderly U.S. citizens get their healthcare coverage through their employers? Choose the closest number.

	a.	6%
	b.	12%
	c.	33%
	d.	50%
	e.	94%

4.

Which type of business buy/sell plan funded with life insurance works best when there are ten owners?

	a.	Cross purchase
	b.	Entity purchase
	c.	Hybrid purchase
	d.	Private purchase
	e.	Minority purchase

5.

In modern life insurance policies, which of the following is voided if the insured dies as the result of warfare?

	a.	Assignment provision
	b.	Double indemnity rider
	c.	Payer provision
	d.	Incontestability clause
	e.	Nonforfeiture provision