Which of the Following Statements About Life Insurance Settlement Options

question 30

Multiple Choice

Which of the following statements about life insurance settlement options is true?

• A)Under the fixed period option,the beneficiary normally has the right to make partial withdrawals in case of emergency.
• B)Under the fixed period option,any remaining proceeds revert to the insurer if the beneficiary dies before the end of the fixed period.
• C)Under the fixed amount option,the beneficiary can be given the right to increase or decrease the fixed amount.
• D)Under the fixed amount option,any interest credited in excess of the guaranteed rate increases the amount of each periodic payment.

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Definitions:

Closing Entries

Entries recorded at the conclusion of a fiscal period to move balances from temporary accounts to permanent ones, thus readying the accounts for the upcoming period.

Closing Entries

Entries in the journal made during the closing of an accounting period to move balances from transitory accounts to enduring accounts.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, different from the calendar year.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts to prepare the books for the next period.