Which of the Following Is True with Regard to Term

question 49

Multiple Choice

Which of the following is true with regard to term life insurance contracts?

• A) Policies of less than 10 year length are illegal in 13 states.
• B) One form of term life increases the amount of insurance as the balance due on a mortgage declines over time.
• C) Renewable term life insurance guarantees the insured that upon renewal, his premiums will not increase.
• D) Term insurance provides temporary protection.

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Definitions:

Final Offer

The last proposal or statement of conditions one party will accept during negotiations.

Negotiating

The process of discussing terms and conditions in order to reach a mutual agreement.

Binding Contract

An agreement that is legally enforceable in a court of law, requiring all parties to fulfill their obligations as outlined.

Written Acceptance

Formal acknowledgment in writing that an offer or proposal has been received and agreed upon.