Policy Loan

question 51

Multiple Choice

Policy loan:

• A) On policies are valuable to the policyholders, and insurers encourage them to protect this feature by saving it for emergency use
• B) Interest rate is raised to eight percent
• C) Interest rate was raised to eight percent, and later variable rates were approved
• D) Do not have variable principal payments or a maturity

---

Definitions:

Normal Distribution

A statistical function that represents the distribution of many types of data; it’s symmetric and describes data that clusters around a mean or average.

Standard Deviation

A statistical measure that quantifies the dispersion of a dataset relative to its mean, used to gauge volatility in financial markets.

Market Performance

An evaluation of how well a particular market is doing, often measured by standard indices.

Small-Company Stocks

Shares of stock issued by companies with a small market capitalization. These stocks are often considered to offer higher growth potential but come with higher risk compared to large-company stocks.