All of the Following Statements About Term Insurance Policies Are

question 11

Multiple Choice

All of the following statements about term insurance policies are true except:

• A)Provide protection only for a temporary period of time
• B)Often can be renewed for additional periods without evidence of insurability
• C)Often can be converted to a permanent life insurance policy
• D)Have a cash value that can be taken by the policy owner if she wishes to terminate coverage early

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Definitions:

Direct Method

A cash flow statement preparation method that shows the specific sources of operating cash receipts and payments.

Indirect Method

A financial reporting approach used in cash flow statements where net income is adjusted for non-cash transactions, depreciation, and changes in working capital to determine cash flow from operating activities.

Direct Method

A cash flow statement preparation approach that itemizes actual cash inflows and outflows from operating activities, as opposed to estimating them through indirect adjustments.

Expenses and Losses

Costs incurred in the operation of a business (expenses) and decreases in value not directly related to operations (losses).