All of the following statements about the automatic premium loan provision in a life insurance policy are true EXCEPT
A) Its purpose is to prevent a policy from lapsing because of nonpayment of premium.
B) The premium loan requires interest to be paid at a stated contractual rate.
C) If the provision is used,the insured must show evidence of insurability to resume regular premium payments.
D) The policy proceeds will be reduced if the premium loans are not repaid by the time of death.
Correct Answer:
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