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.

---

Definitions:

Cost Graphs

A visual representation used in economics and accounting to display the relationship between costs and various levels of activity.

Direct Labor

The labor costs associated with employees who directly contribute to the production of goods or the provision of services.

Straight-line Depreciation

A method of allocating an asset’s cost evenly across its useful life.

Break-even Point

The volume of sales at which total revenues equal total costs, resulting in zero profit or loss.