Which of the following statements regarding a cost-of-living rider on a life insurance policy is NOT correct?
A) An inflation index determines the amount of inflation adjustment that must be made to the policy up to a maximum percentage increase.
B) A cost-of-living rider seeks to protect against inflation's erosion of life insurance policy values.
C) The cost-of-living adjustment is tied to the gross domestic product (GDP).
D) The cost-of-living rider provides increases in insurance without requiring the insured to provide evidence of insurability."
Ans: C) The cost-of-living adjustment is tied to the gross domestic product (GDP).
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