A Long-Term Care Insurance Policy Can Include an Option to Notify

question 30

True/False

A long-term care insurance policy can include an option to notify a third party if the policy is about to lapse for nonpayment.

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Definitions:

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Direct Private Long-term Debt Financing

A funding method where businesses borrow money directly from private investors, bypassing traditional bank loans, usually for a period longer than one year.

Public Issues

The offering of securities by a company to the public in order to raise capital.

Restrictive Covenants

Clauses in a contract that place limitations on the actions of parties involved, often used in real estate and employment agreements.