The Nonforfeiture Clause Ensures That

question 166

Multiple Choice

The nonforfeiture clause ensures that

• A)cash value is protected by financial reserves.
• B)sales commissions are paid in the event of a prematurely terminated policy.
• C)you do not lose the cash value of the policy if you cease making payments.
• D)beneficiaries do not have to forfeit the proceeds to other claimants on the death estate.

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Definitions:

Continuity of Existence

A characteristic of certain business entities that ensures their existence persists regardless of changes in ownership or membership.

Mining Partnership

A specialized form of association where two or more persons collaborate in the development and operation of a mine, sharing profits and losses proportionally to their contributions.

Mineral Interest

The legal share or entitlement to profits from minerals extracted from the ground, typically pertaining to property rights in the context of real estate.

Purported Partners

Individuals who are claimed to be partners in a business, sometimes without the legal or actual basis for such a partnership.