QUESTION 1: Your clients, a young married couple with two children, just purchased a new home and would like to ensure that the mortgage will be paid in the event either of their deaths. Your recommendation is for them to purchase?

A. First-to-die term life

B. Second-to-die term life

C. Family income policy

D. Mortgage whole life

E. All of the above

QUESTION 2: Mr. Hall wants to receive $45,000 at the end of each year in today's dollars for the next 15 years. He is concerned about inflation and wants you to determine the lump sum he would need if the annual rate of inflation averages four percent and he could earn nine percent on his investment.

A. $407,085

B. $495,967

C. $473,216

D. $462,689

E. None of the above

QUESTION 3: When collecting data from a client, what is the most difficult part of this process?

A. obtaining all the data on your checklist

B. obtaining accurate data

C. obtaining timely data

D. obtaining qualitative data

QUESTION 4: Suppose you have just celebrated your 19th birthday. A rich uncle set up a trust fund for you that will pay you $100,000 when you turn 25. If the relevant discount rate is 11%, how much will this fund be worth today?

A. $53,460

B. $151,169

C. $51,212

D. $55,308

E. None of the above

QUESTION 5: The insurance world is broken down into insurance for people and property. Which of the following is true?

A. Discounts or bundles can be obtained for people and property if you have your policies with one company

B. Life and disability Insurance for people is mandatory

C. Discounts are only available on property bundles

D. Discounts are available on people if bundled