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.

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

4.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

5.Insurance agents must be licensed by FINRA to sell ______ insurance.

	a.	Traditional whole life
	b.	Traditional universal
	c.	VUL
	d.	30-year term
	e.	Both a and b

6.When short-term interest rates fell below the level guaranteed by life insurance policies in the early 1990s, sales of which type policy decreased the most?

	a.	Traditional whole life
	b.	Level premium term
	c.	Variable whole life
	d.	VUL
	e.	Traditional universal life

7.Which type of life insurance has a death benefit that decreases month by month?

	a.	Traditional whole life
	b.	1-year premium adjustable
	c.	Double declining balance
	d.	Increasing death benefit
	e.	Credit life