1.A life insurance policy beneficiarycannotuse the cash value of a policy as collateral for a loan because of the ______ provision.

a.

Payer

b.

Spendthrift trust

c.

Guaranteed insurability

d.

Beneficiary

e.

Policy loan

2.Which type of life insurance may contain a non-forfeiture option?

a.

Level death benefit term

b.

Decreasing death benefit term

c.

Traditional whole life

d.

Both a and b

e.

a, b, and c

3.Owners of variable life insurance policies choose how they want premiums invested. Which of the following isleastlikely to be a name for the individual choices?

a.

Sub-accounts

b.

Mutual funds

c.

Separate accounts

d.

Both a and b

e.

Both a and c

4.Which of the following isnota reason for the decline of permanent life insurance expressed as a proportion of total life insurance?

a.

A decline in the number of career agents

b.

Lessening of the need for life insurance

c.

A significant drop in the cost of term insurance

d.

An NAIC rule prohibiting life insurance agents from selling life insurance as an investment.

e.

Other financial products are competing for consumers' limited funds

5.FINRA is

a.

A state regulatory organization.

b.

An NAIC regulatory organization.

c.

A federal regulatory organization.

d.

A Securities and Exchange Commission regulatory organization.

e.

The financial services industry's self-regulatory organization.

6.Which statement about irrevocable life insurance beneficiaries istrue?

a.

Most owners of life insurance policies make their beneficiaries irrevocable.

b.

Irrevocable beneficiaries must pay income tax on the death benefit received.

c.

An irrevocable beneficiary becomes a sole owner of the policy.

d.

A common reason for naming someone as an irrevocable beneficiary is to protect the flow of child support payments if a paying ex-spouse dies.

e.

Both a and c.