Under the Traditional Net Cost Method,the Net Cost of Life

question 43

Multiple Choice

Under the traditional net cost method,the net cost of life insurance for a given period (e.g. ,20 years) is determined by which of the following formulas?

• A)the total premiums for the period less the policy reserve at the end of the period
• B)the total premiums for the period less the sum of the total dividends received during the period and the cash value at the end of the period
• C)the sum of the total premiums and dividends for the period less the cash value at the end of the period
• D)the sum of the total dividends received during the period and the cash value at the beginning of the period less the total premiums paid for the period

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Definitions:

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, energy usage, and air and water pollution.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Validity Effect

The phenomenon where repeated exposure to a statement increases the likelihood of accepting it as true.

Fundamental Attribution Error

is the tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.