All of the Following Are Common Dividend Options Found in Participating

question 1

Multiple Choice

All of the following are common dividend options found in participating whole life insurance policies EXCEPT

• A)reduction of premiums.
• B)dividend accumulations.
• C)purchase of paid-up insurance.
• D)purchase of insurance company stock.

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Definitions:

Pre-tax Effect

The impact on financial results before the adjustment for taxes has been made.

Units

In accounting and financial reporting, it can refer to a measure of quantity, such as items sold or produced.

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale in real-time.

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts.