Universal and Variable Universal Life Policies Have Two Types of Disability

question 7

Multiple Choice

Universal and variable universal life policies have two types of disability riders.The riders are:

• A)Waiver of mortality charges and waiver of premium.
• B)Waiver of mortality expenses and waiver of scheduled premium.
• C)Waiver of expense charges and waiver of mortality premium.
• D)Waiver of scheduled charges and waiver of scheduled premium.

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Definitions:

Owner's Capital Account

An account on a company's balance sheet that represents the owner's invested capital plus retained earnings minus withdrawals.

Balance Sheet Accounts

Accounts that reflect the financial position of a company at a specific point in time, including assets, liabilities, and shareholders' equity.

Closing Entry Process

The procedure used at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, clearing the temporary accounts for the next period.

Permanent Accounts

Permanent Accounts are balance sheet accounts whose balances are carried forward from one accounting period to the next, including assets, liabilities, and equity accounts.