All of the Following Statements About Current Assumption Whole Life

question 50

Multiple Choice

All of the following statements about current assumption whole life insurance are true EXCEPT

• A)It is a form of participating whole life insurance that pays annual dividends.
• B)An accumulation account is credited with an interest rate based on present market conditions and company experience.
• C)Under the low-premium version,the premium is subject to change after an initial guaranteed period.
• D)Under the high-premium version,the premium may be discontinued after a period of time.

---

Definitions:

Volume Flexibility

The ability of a manufacturing or service system to economically adjust its output in response to fluctuations in demand.

Variety Flexibility

The ability of a manufacturing system or company to quickly adapt its operations to produce a wide range of products.

Capacity Management

The process of planning and controlling the resources needed to meet production demands, ensuring optimal use of facilities and equipment.

Peak Demand Season

The period during which a business experiences the highest level of consumer demand for its products or services, often leading to inventory and supply chain challenges.