The Net Amount at Risk for an Ordinary Life Insurance

question 12

Multiple Choice

The net amount at risk for an ordinary life insurance policy is the difference between the

• A)present value of future benefits and the present value of future premiums.
• B)face amount of the policy and the total premiums that have been paid.
• C)face amount of the policy and the legal reserve.
• D)annual premium and the annual policyholder dividend.

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Definitions:

Lab

Short for laboratory, a controlled setting for scientific research, experiments, testing, or analysis.

Downtime

A period during which a system, device, or service is not operational, often for maintenance or technical failure.

Electronic Scheduling

The use of digital tools and software systems to organize, manage, and arrange appointments, meetings, or tasks.

Paper Schedules

Physical or printed timetables used for planning appointments, tasks, and events, in contrast to digital scheduling systems.