An Insured Person Is Generally Allowed, by Policy Provision or Statute

question 29

Multiple Choice

An insured person is generally allowed, by policy provision or statute, a grace period of what length of time in which to make the payment of a premium due on a life insurance policy?

• A) 2 weeks
• B) 30 to 31 days
• C) 2 months
• D) 15 days

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Definitions:

Premium

An amount paid that is above the standard or nominal cost, often for insurance, superior goods, or to designate a higher level of service or coverage.

Coupon Rate

The interest rate stated on a bond when issued, which represents the amount of interest paid to bondholders annually.

Interest Rates

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on savings.

Bond's Price

The market price at which a bond is currently trading. This price can fluctuate based on interest rates, the bond's credit rating, and other factors.