When a Retained Asset Account Is Established in the Place

question 229

Multiple Choice

When a retained asset account is established in the place of a cash settlement, an interest bearing account is created by the insurer for the beneficiary. The beneficiary receives a checkbook with which to draw upon funds in the new account. The account holder can make:

• A) Partial or total withdrawal of the account balance as needed and has total control over the account
• B) Partial withdrawal of the account balance as needed and has total control over the account
• C) Total withdrawal of the account balance as needed and has total control over the account
• D) 25% withdrawal of the account balance as needed and has total control over the account.

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Definitions:

Price

The amount of money required to purchase a good or service, determined by various factors including supply and demand.

Area

The extent or measurement of a surface or piece of land, often expressed in square units.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the good's sensitivity to price changes.

Orange Juice

A liquid extract derived from oranges, commonly consumed as a beverage rich in vitamin C.