QUESTION
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability
Category: Economics
Subject: Law and Economics
Due Date: 02/05/2016
Question Asked: 2016-02-05 12:17:32
Asked by:
User: LightspeedLearning
Rating: No Rating (0)
Earnings: $1.10
Questions: 369
Tutorials: 369
Send me a message
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertability options. When the insured renews the policy in 5 years, what will happen to the premium?
A. It will increase each year during the next 5 years as the face amount increases each year.
B. It will increase because the insured will be 5 years older than when the policy was originally purchased.
C. It will remain the same for the new 5-year term.
D. It will decrease for the new 5-year term since the insured is now a lesser risk to the company.
AVAILABLE ANSWERS
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability
This answer hasn't been purchased yet.
Posted on 2016-02-05 12:17:32
Posted by:
User: LightspeedLearning
Rating: No Rating (0)
earnings: $1.10
Questions: 369
Tutorials: 369
Send me a message
Preview:
...B. It will increase because the insured will be 5 years older than when the policy was originally purchased.C. It w...
The full tutorial is about 102 words long.