Carl Would Like to Purchase Life Insurance

question 45

Multiple Choice

Carl would like to purchase life insurance.He would also like to invest in a mutual fund.An agent told Carl about a form of life insurance in which Carl could select where the saving component is invested.This form of life insurance has fixed premiums and the cash value is not guaranteed.This type of life insurance is called

• A)universal life insurance.
• B)current assumption whole life.
• C)variable life insurance.
• D)indeterminate-premium whole life.

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Definitions:

Tied Selling

A practice where a seller requires the purchase of a second product or service in conjunction with the primary product or service.

Price Stabilization

A set of measures or actions taken to maintain the price level of goods and services, preventing significant fluctuations.

Competition Tribunal

A specialized court-like body empowered to adjudicate on matters of competition law and ensure market fairness.

Penalty Provisions

Clauses in a contract or legislation that impose punishments or fines for the breach of certain terms or laws.