If an Insured Purchases a Guaranteed Insurability Provision on a Life

question 38

Multiple Choice

If an insured purchases a guaranteed insurability provision on a life insurance policy,the:

• A)insured is allowed to pay an extra initial premium in exchange for an assured option to buy more insurance at certain specified times later with no questions asked.
• B)insurer is allowed to excuse the insured from paying premiums if the insured becomes disabled.
• C)insured has to pay an extra $25 in exchange for a guarantee of coverage by the insurance,should the insured become disabled.
• D)insurer has to pay double the amount of the policy to the beneficiary if the insured dies from accidental causes.

---

Definitions:

Ratio Level

The highest level of measurement that describes data with a true zero point and equal intervals between values, allowing for a full range of descriptive and inferential statistical operations.

Statistical Test

A procedure for making inferences about the properties of a population, based on sample data.

Legal Age

The age at which an individual is recognized by law as an adult and capable of making legal decisions.

Chi-Square Test

A statistical test used to determine the significance of an observed association between two categorical variables.