Identify Which of the Following Statements Is False

question 66

Multiple Choice

Identify which of the following statements is false.

• A)The interpolated terminal reserve is similar to a life insurance policy's cash surrender value.
• B)A gift occurs when the owner of an insurance policy irrevocably assigns all ownership rights in the policy to another.
• C)The payment of premiums on an insurance policy that is owned by another does not constitute a gift.
• D)The value of the gift of a life insurance policy is the amount it would cost to purchase a comparable policy on the date of the gift.

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Definitions:

Stimulate Innovation

Encourages the development of new ideas, products, or processes to improve efficiency, effectiveness, or competitive advantage.

Infringe on Innovation

To infringe on innovation means to impose restrictions or barriers that limit the development and implementation of new ideas, technologies, or processes.

Pharmaceutical Industry

A sector of the health care system that discovers, develops, produces, and markets drugs or pharmaceuticals for use as medications.

Creative Destruction

A concept in economics which suggests that new innovations destroy old industries and create new economic structures.