Question 1 (Mandatory) (5 points)

A Preferred Provider Organization (PPO):

Question 1 options:

	is presently available to all employees
	requires an employee to see a specific doctor
	prepays all medical expenses
	provides a partial reimbursement if the employee uses a specific doctor or hospital outside of the approved list
	none of the above statements are true

Question 2 (Mandatory) (5 points)

Joes employer provides disability income benefits for all employees. The employer, not the employee, pays the entire premium. Disability income benefits received under this non-contributory plan are:

Question 2 options:

	taxed at capital gain rates
	tax free
	taxed at ordinary income rates
	taxed at disability income rates

Question 3 (Mandatory) (5 points)

Suppose an investor invests $2,000 at the beginning of each year. What will be the value of the investment at the end of ten years if he earns ten percent?

Question 3 options:

	$31,875
	$35,062
	$13, 518
	$12,289
	$20,000

Question 4 (Mandatory) (5 points)

All of the following questions need to be answered before making the life insurance buying decision, except for:

Question 4 options:

	Duration of the need
	Concern about the financial viability of the current insurer
	Capacity of the policyholder to fund premiums
	Cost of the premium compared to alternatives
	All of these questions need to be answered

Question 5 (Mandatory) (5 points)

If an investor chose to implement a tax strategy which would allow him or her to completely avoid taxation, he or she would be a proponent of which strategy?

Question 5 options:

	Deferral
	Deflection
	Diversion
	A and C
	None of the above. No tax strategy can be used to completely avoid taxation