Which of the Following Is True with Regard to Term

question 54

Multiple Choice

Which of the following is true with regard to term life insurance contracts?

• A)policies of less than 10 year length are illegal in 13 states.
• B)one form of term life increases the amount of insurance as the balance due on a mortgage declines over time
• C)renewable term life insurance guarantees the insured that upon renewal, his premiums will not increase
• D)term insurance provides temporary protection

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Definitions:

Limited Liability

A legal structure that limits the financial responsibility of individuals (e.g., shareholders of a company) to the amount they have invested.

Corporation's Liabilities

The financial obligations or debts for which a corporation is legally responsible.

Liability Limitation

A clause in a contract that restricts the amount of compensation that can be claimed for breaches of the contract or other liabilities.

Cash Assets

Liquid funds or assets readily convertible into cash without significant loss in value.