All of the Following Statements About the Requirements to Reinstate

question 38

Multiple Choice

All of the following statements about the requirements to reinstate a lapsed life insurance policy are true EXCEPT

• A)Evidence of insurability is required.
• B)The lapse must have resulted from other than the surrender of the policy for its cash value.
• C)All overdue premiums must be paid along with interest from the premium due dates.
• D)There is no time limit on when the policy may be reinstated.

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Definitions:

Minimum Price

Is the lowest price at which a product or service can be sold, often set by law or regulation to protect producers or consumers.

Producer

An individual, company, or entity that creates goods or provides services.

Total Cost

The entirety of expenses, fixed and variable, involved in the production of services or goods.

Market Price

The existing value at which an asset or service may be sold or acquired in a trading environment.