The net amount at risk for an ordinary life insurance policy is the difference between the

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Quizplus · Accepted Answer

The net amount at risk for an ordinary life insurance policy is the difference between the face amount of the policy and the legal reserve. The legal reserve is the amount of money that the insurer sets aside to pay for future claims and is based on actuarial calculations of expected future benefits and premiums. Therefore, option C is the correct choice because it addresses both the face amount and the legal reserve. Option A is incorrect because it only takes into account the present value of future benefits and premiums. Option B is incorrect because it only considers the face amount and total premiums paid, not the legal reserve. Option D is incorrect because it only focuses on the annual premium and policyholder dividend, not the overall net amount at risk.

The Net Amount at Risk for an Ordinary Life Insurance