All of the Following Statements About the Requirements to Reinstate

question 38

Multiple Choice

All of the following statements about the requirements to reinstate a lapsed life insurance policy are true EXCEPT

• A)Evidence of insurability is required.
• B)The lapse must have resulted from other than the surrender of the policy for its cash value.
• C)All overdue premiums must be paid along with interest from the premium due dates.
• D)There is no time limit on when the policy may be reinstated.

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Definitions:

Sales Taxes

Taxes imposed by governments on the sale of goods and services.

Regressive

A type of tax system in which the tax rate decreases as the taxable amount increases, often placing a higher burden on lower-income earners.

Inelastic Supply

A situation where the supply of a good does not significantly change when its price changes, often due to limitations in production capabilities or time constraints.

Excise Tax

A tax imposed on specific goods or services, such as tobacco and alcohol, often intended to discourage their use or generate revenue.