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All of the Following Statements About the Surrender Cost Index

Question 15

Multiple Choice

All of the following statements about the surrender cost index for measuring the cost of life insurance are true EXCEPT


A) It is based on a specific time period,such as 10 or 20 years.
B) It takes into account the settlement options available in the policy.
C) It requires that annual premiums be accumulated at a specified interest rate.
D) It takes the amount and timing of each dividend into consideration.

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