Which of the Following Statements About the Surrender Cost Index

question 2

Multiple Choice

Which of the following statements about the surrender cost index for measuring the cost of life insurance is true?

• A)It is based on the assumption that the policy will be in force indefinitely.
• B)It takes into account the settlement options available in the policy.
• C)It does not consider the cash value in the policy.
• D)It takes the amount and timing of each dividend into consideration.

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Definitions:

Intangible Attributes

Characteristics of a product or service that cannot be physically touched or measured, such as brand reputation or customer service quality.

Organizational Buyers

Those who make purchasing decisions on behalf of a company or organization, often including considerations like bulk buying, contractual negotiations, and supplier relationships.

Nondurable Good

Products that are consumed or are only usable for a short period before they are depleted or become unusable.

Product Development

The comprehensive process of bringing a new product or service to market, from idea generation to commercialization.