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An Automatic Premium Loan Provision Is Designed

Question 47

Multiple Choice

An automatic premium loan provision is designed


A) to pay premiums that are not paid when due to prevent lapse,
B) to reduce the amount of administrative time used to approve a policy loan,
C) to negate the necessity of loan approval by the insurer's loan committee,
D) to allow loans to automatically qualify if supported by superior collateral.

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