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:

Knowledge

The factual information, understanding, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Time Management Skills

The abilities that allow an individual to use their time productively and efficiently, prioritizing tasks and setting aside time for personal and professional growth.

Needs Assessment

A process used to determine and address gaps between current conditions and desired conditions or wants.

Performance Improvement

The process of identifying, analyzing, and improving existing business processes to optimize performance, increase efficiency, or meet new quotas or standards.