Which of the following statements about the change of plan provision in a life insurance contract is (are)true?
I.A change to a lower premium policy results in a refund of the difference in the cash values of the two policies.
II.A change to a higher premium policy requires evidence of insurability.

Question

Quizplus · Accepted Answer

Statement I is true, as a change to a lower premium policy would result in a lower cash value and thus a refund of the difference in cash values. Statement II is not necessarily true, as a change to a higher premium policy may or may not require evidence of insurability, depending on the specific policy and the terms of the change of plan provision.

Which of the Following Statements About the Change of Plan