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11. The cash value in a whole life insurance policy exceeds the cost of (a) arises because the premium paid in the early years ex protection. e and term policy o) increases until it meets the face of the contract at the end of the po (d) all of the above period. 12. Life insurance contracts receive favorable tax treatment in that (a) proceeds to a beneficiary are not usually taxable as income (b) the investment on eamings on the cash value are not taxed during the (e) in computing taxable gain, the insured may deduct all premiums (d) all of the above. period of accumulation. including the element that paid for protection. 13. The policy in which the insured has the right to diret how the funds willbe nvesteo nvested is 13. The (a) adjustable life. (b) universal life. (c) variable life. (d) equity life. 14. Cash value life insurance may be an attractive investmen t for those individuals (a) (b) (c) (d) who use an irrevocable life insurance trust. who do not really need life insurance but who have difficulty sa who have no one to claim as dependents on their federal income tax. who will benefit from the favorable tax treatment and who need insurance life 15. The elimination period in disability income contracts performs a similar function to (a) a waiver of premium clause. (b) a deductible. (c) an incontestable clause. (d) a facility of payment clause. 16. The chance of being disabled is (a) less than the chance of death at any age. (b) greater than the chance of death during working years c) about the same as the chance of death (d) less than the chance of death during middle ages. insurance provides coverage for 11. Business interufit during a periodof internption and expenses of net incurred during that period b) loss of profits on finished goods that are and expenes a are amage o estoyod r buss (c) loss of pron (d) damage to stock or

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