1.A worker bought a permanent life insurance policy 50 months ago, paying a monthly premium of $100. Then he lost his job, needed all the money he could find, lapsed his policy, and received $8,000 of cash from the insurance company. For federal income tax purposes, is any part of the $8,000 taxable income?

	a.	No
	b.	Yes, all $8,000
	c.	Yes, $5,000
	d.	Yes, $3,000
	e.	Yes, $2,000

2.Which statement about life insurance policy lapses or reinstatements is always true?

	a.	Most lapsed policies are reinstated eventually.
	b.	A policyowner cannot reinstate a lapsed policy unless the reinstatement rider was purchased when the policy was issued.
	c.	Insureds do not have to prove they are still insurable when reinstating a policy.
	d.	The majority of reinstatements occur within the first 2 months of a lapse.
	e.	To reinstate, a policyowner must repay the missed premium payments without interest.

3.The financial health of about 60% of life insurance companies is rated at least ______ by A.M. Best.

	a.	A++
	b.	A+
	c.	A
	d.	A-
	e.	B-

4.Which measure of an insurance company's financial health is an index composite of the others?

	a.	Comdex
	b.	A.M. Best
	c.	Moody's
	d.	Weiss
	e.	Standard and Poors

5.What can be said about healthcare coverage for workers employed by U.S. firms with at least 200 employees?

	a.	The majority have coverage through the ACA (ObamaCare).
	b.	The majority don't have healthcare coverage as a fringe benefit.
	c.	The majority have coverage provided by their employers self-insurance plans.
	d.	The majority have traditional healthcare plans.
	e.	All of the above (Be very careful with this choice).

6.Which is the most important reason the number of US life insurance companies declined from a peak of 2,343 in 1988 to less than 800 today?

	a.	Bankruptcies
	b.	Mergers and acquisitions
	c.	Life insurers converted to health insurers
	d.	Life insurers converted to P&C insurers
	e.	Life insurers converted to reinsurers