Which of the Following Statements Is True Regarding Return of Premium

question 31

Multiple Choice

Which of the following statements is true regarding return of premium term insurance?

• A)The insurance is free because premiums are refunded at the end of the coverage period.
• B)Life insurers charge less for this coverage than for regular term insurance that does not include a refund provision.
• C)The return of premium is only offered on one-year term insurance policies.
• D)The amount returned is only the base premium and does include the cost of any riders.

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Definitions:

Marginal Cost

The cost associated with producing one additional unit of a product or service.

Total Product

The total quantity of output produced by a firm or economy, resulting from the use of given inputs over a specific period.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

4th Worker

The concept or individual representing the fourth hire in a sequence, often associated with incremental contribution or changes in team dynamics.