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A legal reserve in life insurance is a result of A ) inadequate premiums in the early policy years being subsidized by investment earnings. B

A legal reserve in life insurance is a result of
A) inadequate premiums in the early policy years being subsidized by investment earnings.
B) excess premiums in the early policy years being invested at compound interest.
C) dividends being paid to policyholders.
D) premium taxes payable by life insurance companies being postponed during the early policy years.
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