Which of the Following Statements About Life Insurance Policy Loans

question 12

Multiple Choice

Which of the following statements about life insurance policy loans is true?

• A)Loans are only permitted for specific reasons listed in the policy.
• B)They are forgiven if the insured dies before the loans are repaid.
• C)The policyholder must pay interest on a life insurance policy loan.
• D)They must be repaid on the basis of a schedule determined at the time of the loan.

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Definitions:

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a learned response following the cessation of reinforcement.

Reinforcement

In psychology, a process of encouraging or establishing a pattern of behavior by offering rewards or punishing unwanted behavior.

Punishment

The imposition of a penalty as a response to an undesired behavior, intended to discourage future occurrences of such behavior.

Negative Consequences

Results of a behavior that a person finds unattractive or aversive.