Which of the Following Statements About Re-Entry Term Insurance Is

question 29

Multiple Choice

Which of the following statements about re-entry term insurance is true?

• A)It permits substandard risks to purchase insurance at standard rates.
• B)It permits a refund of premiums paid if the term insurance is renewed a specified number of times.
• C)It permits a lower renewal premium if the insured demonstrates insurability.
• D)It permits a lapsed whole life policy to be reinstated as term insurance.

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Definitions:

Marginal Cost

The boost in expenditure linked to creating an additional unit of a good or service.

Average Total Cost

Refers to the sum of all production costs divided by the total output produced, indicating the cost per unit of producing a good or service.

Cakes

Baked desserts that are typically sweet and made from ingredients such as flour, sugar, and eggs.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as more of that good is produced.