Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A)The surrender value of a policy is the cash value received from the insurer if a policyholder surrenders the policy prior to maturity.
• B)The surrender value of a policy is the cash value received from the insurer if a policyholder surrenders the policy at maturity.
• C)The surrender value of a policy is the cash value received from the policyholder if the insurance company surrenders the policy prior to maturity.
• D)The surrender value of a policy is the cash value received from the policyholder if the insurance company surrenders the policy at maturity.

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Definitions:

Life Estate

A legal right to use and derive benefit from property for the duration of one's life, after which control reverts to another party.

Fee Simple

A type of freehold ownership where the owner has the greatest possible rights over the land forever.

Prescriptive Right

A right acquired through long-term use, such as the right to cross someone else's land, established by consistent and uninterrupted use over a period prescribed by law.

Covenant

A formal, binding agreement or promise, often found in contracts and legal documents.