In Which Case Are Life Insurance Benefits Not Payable

question 35

Multiple Choice

In which case are life insurance benefits not payable?

• A)If the insured is killed in an accident ten days after the policy's effective date.
• B)If the insured commits suicide within two years of the policy's effective date.
• C)If the insured is diagnosed with a serious illness one month after the policy's effective date.
• D)If the insured is killed in a car accident and the premium is 23 days overdue.

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Definitions:

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is expected to fall.

Absolute Purchasing Power Parity

A theory that suggests that the price of goods in different countries should be equal when measured in a common currency.

Exchange Rate

The price of one country's currency in terms of another currency or currencies.

Inflation

The pace at which prices for a wide range of goods and services elevate, depreciating the power to purchase.