If You Have a Renewable Term Policy

question 94

Multiple Choice

If you have a renewable term policy,

• A) You may not purchase insurance once your term ends.
• B) Your premium may increase if you continue it for another term because you will be older.
• C) Your premium will not increase because your policy is renewable.
• D) You can convert your policy to a permanent type at the end of the term.
• E) None of these is correct.

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Definitions:

Bounded Rationality

A concept that individuals make decisions based on the limited information available to them, restricting them from making 'perfect' choices.

Implicit Favorites

The subconscious preference for certain individuals over others, often influencing decision-making and behavior unconsciously.

Decision Structure

The organizational framework that outlines how decisions are made, who makes them, and the processes used to reach conclusions.

Nonprogrammed Decision

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.