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A legal reserve in life insurance is a result of: a.) Premium taxes payable by life insurance companies being postponed during the early policy years.

A legal reserve in life insurance is a result of: a.) Premium taxes payable by life insurance companies being postponed during the early policy years. b.) Dividends being paid to policyowners. c.) Inadequate premiums in the early years being subsidized by investment earnings. d.) Excess premiums in the early policy years being invested at compound interest.

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