All of the Following Statements About Current Assumption Whole Life

question 2

Multiple Choice

All of the following statements about current assumption whole life insurance are true EXCEPT

• A)It is a form of participating whole life insurance that pays annual dividends.
• B)An accumulation account is credited with an interest rate based on present market conditions and company experience.
• C)Under the low-premium version,the premium is subject to change after an initial guaranteed period.
• D)Under the high-premium version,the premium may vanish after a period of time.

---

Definitions:

Economic Value

Refers to the value a good or service has in the context of its ability to generate income or utility.

Interest

The cost of borrowing money or the return on investments, usually expressed as a percentage of the amount lent, deposited, or invested.

Interest

A monetary charge for the concession to borrow currency, habitually framed as an annual percentage figure.

Television

An electronic system of transmitting transient images of fixed or moving objects together with sound over a wire or through space by apparatus that converts light and sound into electrical waves and reconverts them into visible light rays and audible sound.