Author Question: All of the following statements about the conversion of a term policy are true EXCEPT A) Under an ... (Read 54 times)

lak · **on:** Jul 11, 2018

All of the following statements about the conversion of a term policy are true EXCEPT

A) Under an attained age conversion, the premium is based on the insured's attained age at the time of conversion.
B) Under an original age conversion, the policyowner must pay a financial adjustment in addition to the premium for the new policy.
C) Most insurers require original age conversion to take place within a specified period (5 years, for example) of the issue of the term policy.
D) Evidence of insurability is required before a conversion is permitted.

Question 2

What happens to the premiums for yearly renewable term insurance as an insured gets older?

A) They increase at an increasing rate.
B) They increase at a decreasing rate.
C) They decrease at a constant rate.
D) They remain level.