The Dividend Option Clause in a Life Insurance Policy Gives

question 7

Multiple Choice

The dividend option clause in a life insurance policy gives the policyholder the right to do all the following except:

• A) Apply dividends toward premiums payments
• B) Purchase stock in the company at rates below that of the market
• C) Leave the dividend with the company to earn interest
• D) Purchase additional paid-up insurance
• E) None of the above

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Definitions:

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear to be of different lengths because of converging parallel lines.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Set Point

A theory suggesting that an individual's body weight is maintained around a biologically determined point, with the body regulating metabolism to maintain weight around this point.

Drive

An internal motivational state created by physiological needs that drives an organism to fulfill those needs.