Which statement is true with regard to the incontestable clause?
I. It protects the beneficiary if the insurer attempts to deny payment of the death claim more than two years after the policy was purchased.
II. It allows the insurer to deny a death claim during the first two years of coverage on the basis of concealment or misrepresentation by the applicant.
(a) I only
(b) II only
(c) both I and II
(d) neither I nor II
Ans: (c) both I and II
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The corporate veil can be pierced for inadequate capitalization
Indicate whether the statement is true or false
You have determined the profitability of a planned project by finding the present value of all the cash flows form that project. Which of the following would cause the project to look more appealing in terms of the present value of those cash flows?
A) The discount rate decreases. B) The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same. C) The discount rate increases. D) Answers b and c above. E) Answers a and b above.