An Insurance Company Can Cancel an Entire Class of Disability

question 121

True/False

An insurance company can cancel an entire class of disability income replacement policies if they contain a class cancelable provision.

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Definitions:

Selling Prices

The amount a customer pays to purchase a product or service from a seller.

Variable Costs

Expenses that vary with the amount of output or sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent or salaries.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.