Which of the Following Statements About Industrial Life Insurance (Also

question 40

Multiple Choice

Which of the following statements about industrial life insurance (also called home service life insurance) policies is true?

• A)Most policies have a face value exceeding $100,000.
• B)Most industrial life insurance policies are cash value coverage.
• C)Industrial life insurance is group term insurance coverage marketed to employers.
• D)This popular product accounts for over 40 percent of the life insurance sold today.

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Definitions:

Inferior Goods

Goods whose demand decreases as the income of the consumers increases, opposite to what is observed with normal goods.

Normal Good

A normal good is a type of good for which demand increases when income increases, and decreases when income decreases, showing a direct relationship between income and demand.

Consumer Income

The total income received by consumers, including wages, salaries, benefits, and income from investments, which can be spent or saved.

Ice Cream

A frozen dessert made from dairy products, such as milk and cream, combined with flavors and sweeteners, often consumed as a treat or snack.