Which of the Following Permits You to Extend Your Policy

question 58

Multiple Choice

Which of the following permits you to extend your policy without having to take a medical exam?

• A) Disability premium waiver.
• B) Value provision.
• C) Convertibility provision.
• D) Guaranteed renewability provision.

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Definitions:

Net Operating Income

The income derived from a company's primary business activities, not including costs or income from activities not related to its main operations.

Margin Of Safety

The difference between actual or projected sales and the sales level at which the business doesn't incur any loss but doesn't make a profit either.

Contribution Format

A type of income statement formatting that separates fixed and variable costs, helping to analyze the impact of sales volume on net income.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating income and expenses.