Which Statement Is False Regarding Switching Policies

question 160

Multiple Choice

Which statement is false regarding switching policies?

• A)An author noted that half of those who buy whole or universal life drop them within 10 years.
• B)The insurance industry is regulated by state insurance commissioners.
• C)Your need for life insurance coverage will change over time.
• D)A new life insurance policy will cost more as you get older.
• E)You will always be insurable if you switch policies.

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Definitions:

Reverse Stock Split

A corporate action where a company decreases the number of its existing shares to increase the share price without changing the company’s market capitalization.

Liquidating Dividend

A special dividend paid to shareholders when a company is partially or completely dissolved, representing a return of capital rather than profit.

High-Dividend Payout

A company's policy or practice of distributing a large portion of its profits to shareholders in the form of dividends.