All of the Following Statements Describe the Flexibility Available to the Owner

question 17

Multiple Choice

All of the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPT

• A)Policy loans are permitted on an interest-free basis.
• B)The frequency of premium payments can be varied.
• C)The death benefit can be increased with evidence of insurability.
• D)Premium payments can be any amount provided there is sufficient cash value to keep the policy in force.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as maintenance, depreciation, and utilities.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated total manufacturing overhead costs and estimated allocation base, used to allocate overhead to products or job orders.

Manufacturing Departments

Specialized sections within a manufacturing facility responsible for different stages of product production, such as assembly, finishing, or quality control.

Machine-Hours

This measure indicates the collective operational duration of machinery used in manufacturing or production processes over a specified timeframe.