Dwayne Blue Was Pleasantly Surprised to Find Out That Within

question 17

Multiple Choice

Dwayne Blue was pleasantly surprised to find out that within three to five years after expiration of a previous life insurance policy, he can

• A) change beneficiaries.
• B) void the grace period.
• C) reinstate the policy subject to current qualifications.
• D) change the incontestability clause.
• E) both A and D above

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale.

LIFO

Last In, First Out, an inventory valuation method where the last items added to inventory are assumed to be the first ones removed, affecting cost of goods sold and inventory value.

Lower-Of-Cost-Or-Market

An accounting principle stating that inventory should be recorded at the lower of its historical cost or its current market price.

LIFO

Last In, First Out, a stock valuation approach that accounts for the most newly manufactured goods as being sold before all others.