FALSE (Please marka Tor Fon your answer sheet) 21. A non-forfeite option in which the cash value is used to keep the full death benefit in force possible is called the extended term opcion. The installation of ww w sprinkler we in a hotel is an example of a loss reducto dath benefit in force for as long as hotel is an example of a loss reduction method of Requiring retailers who sella 's pode r ing the firm from the process injures someone is cample of the voidance method of managing risk primary reason why insurance is not considered anymous with big hamborgar speculative risk when the money is w ords opposed to covering an ready existing pure non commits suicide and has a cide cause in his or her life insurance contract, the insurance com is required to pay a death claim and will only be required to refund the insured's premium payments If a person is reinstating a lapsed policy under the reinstatement provision, he does not have to provide evidence of insurability Under the waiver of premium provisions, an insured con elect to have his or her premiums waived by paying a lump sum equal to the present value of all future premiums due on the insurance contract Under current law, the proceeds payable to a beneficiary in a lump sum at death are not taxable as income to the beneficiary. In order for a life insurance policy to be both free from income tax AND estate tax, it is typically owned by and payable to an irrevocable trust T 30. When shopping for life insurance, you always want a policy with the highest possible Surrender Cost Index. T The guaranteed purchase option permits a policyowner to purchase additional amounts of life insurance at specified times in the future without evidence of insurability. Regardless of your health, you should always replace a life insurance policy if the cash value is not growing as fast as the insurance company originally projected for you. T Once a life insurance policy has been in force for 24 months, under normal circumstances, the insurance company cannot deny payment of a death claim even if the insured lied on his original application 34. When When shopping for life insurance, the financial strength of the insurance company is not important because all states have guaranty funds that will pay the entire death benefit regardless of amount