An applicant wants to buy a policy that has cash value element. Which type should she buy?

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An applicant wants to buy a policy that has cash value element. Which type should she buy?

a. term
b. permanent
c. stock
d. investment

Answer: b. permanent- death protection and savings/cash value option

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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