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:

Support Department Allocations

The process of distributing indirect costs from support departments to producing departments based on relevant allocation bases.

Operating Income

Operating income is the amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Departmental Expenses

are costs that are directly incurred by a specific department within an organization and are typically allocated directly to that department.

Direct Operating

Expenses directly associated with the day-to-day operations of a business, such as costs for materials and labor used in producing goods or services.