All of the Following Statements About the Characteristics of Group

question 33

Multiple Choice

All of the following statements about the characteristics of group insurance are true EXCEPT

• A)Many people are covered under a single contract.
• B)The cost of group insurance may be lower than the cost of individual insurance.
• C)The actual experience of a large group is a factor in determining the premium that is charged.
• D)Individual evidence of insurability is usually required.

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Definitions:

Interest Rates

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Variable Rate Loan

A loan with an interest rate that can change, based on a benchmark interest rate or index, affecting monthly payment amounts.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Put Option

An agreement in finance that allows the owner to sell a certain quantity of a basic asset at an agreed-upon price before a certain deadline, without being required to do so.