A policyowner stops paying premiums on a whole life policy with an accidental death benefit and exchanges the policy for extended term insurance. All of the following statements pertaining to this situation are correct EXCEPT:

A) the term policy has no cash value.

B) the policyowner will have continued protection for a limited period of time.

C) there will be no accidental death benefit with the new policy.

D) the term policy will have a reduced face value.

Answer: D) the term policy will have a reduced face value.

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A domestic insurer issuing variable contracts must establish one or more
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A securities license is required for a life insurance producer to sell
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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All of the following are true regarding a decreasing term policy EXCEPT
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called
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The paid-up addition option uses the dividend
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The paid-up addition option uses the dividend
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Insurance represents the process of risk
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What is the purpose of establishing the target premium for a universal life policy?
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