Exam DISC-IA Practice Question 201
Study guide: Exam DISC-IA
The owner of a whole life policy has paid level annual premiums for six years and now stops paying. Under a state law based on the NAIC Standard Nonforfeiture Law for Life Insurance, what must the policy provide?
- A) Nothing, because the cash value is forfeited when a scheduled premium is missed
- B) A refund of every premium paid, less any policy loan outstanding
- C) A paid-up nonforfeiture benefit, or a cash surrender value on surrender
- D) Continued coverage at the full face amount, with the charges taken from the cash value
Answer this question and see the worked solution