Which of the Following Statements Is True About a Guaranteed

question 88

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 noncancelable.
• 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:

Tax

Mandatory financial charges imposed by a government on individuals, corporations, or other entities to fund public expenditure.

Commerce

The activity of buying and selling, especially on a large scale, involving transportation and exchange of goods and services.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.

Confederation

An organization that consists of a number of parties or groups united in an alliance or league, often referring to a union of states with limited central power.