Which of the Following Statements Is True Regarding Return of Premium

question 56

Multiple Choice

Which of the following statements is true regarding return of premium term insurance?

• A) The insurance is free because premiums are refunded at the end of the coverage period.
• B) Life insurers charge less for this coverage than for regular term insurance that does not include a refund provision.
• C) The return of premium is only offered on one-year term insurance policies.
• D) The coverage is expensive and is not free when time value of money is considered.

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Definitions:

Butan-1-ol

A primary alcohol with the formula C4H9OH, where the hydroxyl group is attached to the first carbon of a four-carbon chain.

Ethers

Ethers are a class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups.

Solvents

Liquids capable of dissolving or dispersing one or more other substances.

Organic Reactions

Chemical reactions involving organic compounds.