Author Question: All of the following statements describe the flexibility available to the owner of a universal life ... (Read 47 times)

lracut11 · **on:** Jul 11, 2018

All of the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPT

A) Policy loans are permitted on an interest-free basis.
B) The frequency of premium payments can be varied.
C) The death benefit can be increased with evidence of insurability.
D) Premium payments can be any amount provided there is sufficient cash value to keep the policy in force.

Question 2

All of the following statements about current assumption whole life insurance are true EXCEPT

A) It is a form of participating whole life insurance that pays annual dividends.
B) An accumulation account is credited with an interest rate based on present market conditions and company experience.
C) Under the low-premium version, the premium is subject to change after an initial guaranteed period.
D) Under the high-premium version, the premium may be discontinued after a period of time.