Which of the Following Statements About the Surrender Cost Index

question 2

Multiple Choice

Which of the following statements about the surrender cost index for measuring the cost of life insurance is true?

• A)It is based on the assumption that the policy will be in force indefinitely.
• B)It takes into account the settlement options available in the policy.
• C)It does not consider the cash value in the policy.
• D)It takes the amount and timing of each dividend into consideration.

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Definitions:

Nonprogrammed Decision-making

The process of making decisions in response to unique, novel, or ill-structured situations that require creativity and judgment.

Product Innovation

The creation and introduction of new or significantly improved goods or services in the market.

Process Innovation

The implementation of a new or significantly improved production or delivery method, enhancing efficiency or quality.

Organizational Cultural Lag

The delay between changes in organizational culture and the adaptation of its strategies, processes, or structure.