A Term Insurance Policy That Includes a Conversion Privilege Gives

question 47

Multiple Choice

A term insurance policy that includes a conversion privilege gives the insured the right to:

• A) renew the policy for another time period of the same length
• B) exchange the term policy for a permanent plan of insurance
• C) increase or decrease the death benefit
• D) include the nonforfeiture provision in the policy

---

Definitions:

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today, often used for hedging risks.

Canadian Dollars

The currency of Canada, represented as CAD or $.

Gross Recording

An accounting practice where transactions are recorded in full without deducting any related expenses or costs.

Spot Rates

The current market price at which a particular asset can be bought or sold for immediate delivery.