Under the Traditional Net Cost Method,the Net Cost of Life

question 43

Multiple Choice

Under the traditional net cost method,the net cost of life insurance for a given period (e.g. ,20 years) is determined by which of the following formulas?

• A)the total premiums for the period less the policy reserve at the end of the period
• B)the total premiums for the period less the sum of the total dividends received during the period and the cash value at the end of the period
• C)the sum of the total premiums and dividends for the period less the cash value at the end of the period
• D)the sum of the total dividends received during the period and the cash value at the beginning of the period less the total premiums paid for the period

---

Definitions:

Economic Concerns

Issues related to the financial health and stability of an economy, including inflation, unemployment, and GDP growth.

Housing

The provision of shelter or accommodation, including the structures and related policies that determine how residential spaces are built, allocated, and governed.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists in the case under investigation.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, a threshold for determining statistical significance.