This was a pioneer empirical study of the effectiveness of residential and nonresidential adult education programs. Two similar courses in insurance fundamentals were given by the same instructor, for the same length of time, and with the same objectives. One eight day residential course for 60 participants was held at the Michigan State Kellogg Center for Continuing Education and the eight-day nonresidential course for 74 participants was held in Detroit. Three methods of testing achievement were used: an essay type quiz, measures of knowledge application, and state insurance test results, to measure combined knowledge acquisition and application. The central hypothesis tested was that residential instruction results in superior achievement. Also analyzed were attitudes toward fellow students, instructors, and the program. Results tended to affirm the superiority of residential instruction and it has been suggested that the determinants are the combined effects of isolation, continuity, and group influence. Further research is needed to clarify such emerging problems as the possible influence of subject content, methodology, and prior experience. (ly)