Which of the Following Statements About Endowment Insurance Policies Is

question 33

Multiple Choice

Which of the following statements about endowment insurance policies is (are) true?
I.The face amount is paid if the insured dies during the policy period or at the end of the policy period if the insured is still alive.
II.The use of endowment insurance has increased in recent years because of its favorable tax treatment.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used in manufacturing to allocate overhead costs to products.

Machine-Hours

A metric signifying the amount of time a machine operates, utilized for computing the costs and effectiveness of production.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead cost to products, calculated before the production period begins.

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as utilities, maintenance, and salaries of supervisory personnel.