Author Question: Which of the following statements about life insurance cash values is (are) true? I. Cash values ... (Read 110 times)

ericka1 · **on:** Jul 11, 2018

Which of the following statements about life insurance cash values is (are) true?

I. Cash values are a result of the level premium method of purchasing life insurance.
II. The cash value of a policy must always exceed the policy's legal reserve.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

The purchase of term insurance is justified by which of the following circumstances? I. The insured wants to save money through the policy for a specific need. II. The insured has a temporary need for life insurance protection.

A) I only
B) II only
C) both I and II
D) neither I nor II