Which of the Following Statements Is True of the Suicide

question 51

Multiple Choice

Which of the following statements is true of the suicide clause in a life insurance?

• A) The insurer is liable to pay in cases of legitimate suicides even if the life insurance policy had elapsed.
• B) The suicide clause has a specified date set.
• C) The insurer doesn't have to pay the beneficiary even if the suicide takes place after the specified date.
• D) The suicide has to occur within the specified date for payment.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the company.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Income Statement

A financial statement that shows a company's revenue, expenses, and profit over a specific time period.

Income Statement

A financial statement that reports a company's revenues, expenses, and net income over a specific period.