Which of the Following Statements Is True About a Guaranteed

question 30

Multiple Choice

Which of the following statements is true about a guaranteed renewable long-term care policy?

• A) benefits are taxable.
• B) premiums are never tax deductible.
• C) the policy is non-cancellable.
• D) premiums cannot be increased by the insurer unless they are increased for the entire rating class.
• E) premiums cannot increase for any reason.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used to assess the evidence against the null hypothesis.

Type I Error

The error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected, often referred to as a "false positive."

Population Means

The average of all measurements, values, or quantities in a complete population.

Confidence Level

The probability that the value of a parameter falls within a specified range of values.