The insured buys a non-participating whole life policy. Many years later the insured is disabled and cannot afford the premiums anymore. She exercises the Extended Term Non-forfeiture option. Which statement is not true?
A. The policy will accrue cash value, but with a lower death benefit coverage.
B. No more premium payments are required.
C. The coverage amount will remain the same as the original policy.
D. The policy will remain in force a certain number of years, then expire.
Ans: A. The policy will accrue cash value, but with a lower death benefit coverage.
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Use the following information to answer the question below. When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1 . The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000
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