The Net Amount at Risk for an Ordinary Life Insurance

question 12

Multiple Choice

The net amount at risk for an ordinary life insurance policy is the difference between the

• A)present value of future benefits and the present value of future premiums.
• B)face amount of the policy and the total premiums that have been paid.
• C)face amount of the policy and the legal reserve.
• D)annual premium and the annual policyholder dividend.

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Definitions:

Respiratory Infection

An infection that affects the respiratory system, including the lungs, throat, or sinuses, caused by viruses or bacteria.

Cancer

A broad group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body.

Stress

A psychological and physical response to perceived challenges or threats, often triggering the body's fight-or-flight response.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, life-threatening condition caused by the human immunodeficiency virus (HIV).