About the forms of universal life insurance

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Reference no: EM131974176

1. Which of the following statements about the forms of universal life insurance is (are) true?

I. Option A has a level death benefit during the early policy years.

II. Under option B, the death benefit decreases as the cash value increases.

Both I and II

I only

Neither I nor II

II only

2. When pricing its new life insurance product, the Edgemont Insurance Company added an amount to the net premium to cover the company’s operating costs and allow some profit. This additional amount is referred to as the

contingency reserve

gross premium

assessment

Reference no: EM131974176

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