Which of the Following Statements About the Guaranteed Purchase Option

question 39

Multiple Choice

Which of the following statements about the guaranteed purchase option is true?

• A)An insured usually has 24 months to exercise an option.
• B)The option cannot be exercised until the insured reaches age 40.
• C)The amount of life insurance that can be purchased at each option is limited to 10 percent of the face amount of the basic policy.
• D)The additional coverage can be purchased without demonstrating insurability.

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Definitions:

Infertile Couples

Couples who are unable to conceive a child after one year of regular, unprotected intercourse.

Conceive

To form a notion, idea, or plan in the mind.

Randomly Assigned

Random assignment is a method used in experiments to place participants into different groups using randomization, which helps ensure that each group is similar at the start of the experiment.

Experimental Group

In an experiment, the group that is exposed to the treatment, that is, to one version of the independent variable.