For the Insurer, the Difference Between the Reserve at Any

question 44

Multiple Choice

For the insurer, the difference between the reserve at any point in time and the face amount of the policy is known as:

• A)net amount at risk.
• B)protection element.
• C)cash value.
• D)surrender value.
• E)premium value.

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Definitions:

Property Taxes

Taxes levied by local governments on real estate based on the property's assessed value, used to fund public services.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific product units, such as lubricants and cleaning supplies used in machinery.

Total Fixed Costs

The combined sum of all costs that do not change with the level of production or sales over a short period.

Master Budget

The total of all individual budgets within an organization, projecting all major financial activities over a period.