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The Automatic Premium Loan Provision in Life Insurance

Question 1

Multiple Choice

The automatic premium loan provision in life insurance:


A) pays the face amount of a life insurance policy to a terminally ill insured
B) pays premiums due out of the policy's cash value if the policy owner forgets to pay
C) provides spendable cash to a terminally ill insured out of the cash value
D) provides disability income payments as a loan from the cash value

Correct Answer:

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