Which of the Following Statements Is True Regarding an Automatic

question 36

Multiple Choice

Which of the following statements is true regarding an automatic premium loan provision?

• A)Its purpose is to prevent a policy from lapsing because of nonpayment of premium.
• B)Interest does not have to be paid on an automatic premium loan.
• C)If the provision is used,the insured must show evidence of insurability to resume regular premium payments.
• D)An automatic premium loan,unlike a regular policy loan,is forgiven if the insured dies before the loan is repaid.

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Definitions:

U.S.-produced Goods

Products that are manufactured, created, or assembled within the United States.

Production Possibilities Frontier

A graph that shows the combinations of two goods or services that an economy can produce, given its technological capabilities and resources.

Adaptable Resources

Resources that can be adjusted or converted to meet changing conditions or requirements within an economy or market.

Closed Economy

An economic system that does not engage in international trade, with no exports or imports, relying solely on domestic production and consumption.