Which of the Following Statements About the Grace Period in a Life

question 27

Multiple Choice

Which of the following statements about the grace period in a life insurance contract is (are) true?
I.It is usually between 90 and 180 days in duration.
II.If the insured dies during the grace period,the death benefit is reduced by 50 percent.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

Understand the distinction between governmental and business-type activities in financial reporting.

Gain knowledge of the process and importance of preparing closing entries and their impact on temporary accounts.

Understand the purpose and structure of a classified balance sheet, including the differentiation between current and non-current assets, and liabilities.

Comprehend the significance and calculation of the current ratio as a measure of a company's financial liquidity.

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Definitions:

Flexible Benefit Programs

Employee benefit plans that allow individuals to choose from a range of options best suited to their personal needs or situations.

Medical Coverage

Insurance or plans that provide reimbursement or direct payment for healthcare services to the insured individuals.

Prescription Drug Coverage

A health insurance benefit that helps pay for prescribed medication.

Short-term Disability Plan

An insurance program that provides employees with a portion of their income for a limited period when they are unable to work due to illness or injury.