Which of the Following Statements About the Grace Period in a Whole

question 27

Multiple Choice

Which of the following statements about the grace period in a whole life insurance contract is (are) true?
I.The purpose of the grace period is to prevent the policy from lapsing by giving the policyowner additional time to pay an overdue premium.
II.If the insured dies during the grace period,the death benefit is reduced by 50 percent.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

---

Definitions:

Superior Vena Cava

A large vein carrying deoxygenated blood from the upper half of the body to the heart's right atrium.

Pulmonary Vein

A blood vessel that carries oxygenated blood from the lungs back to the left atrium of the heart.

Infero-anterior Apex

The lowest forward-facing point of a structure, such as the tip of the heart.

Posterior Interventricular Artery

A blood vessel that runs along the heart's surface and supplies the ventricles with oxygen-rich blood.