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    Question

    An adjustable life insurance under which premiums and

    coverage are adjustable, company’s expenses are not specifically disclosed to the insured but a financial report is provided to policyholders annually is called?
    A Universal Life Insurance Correct Answer Incorrect Answer
    B Unauthorized Reinsurance Correct Answer Incorrect Answer
    C Underwriter Correct Answer Incorrect Answer
    D Underwriting Risk Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Universal life insurance is permanent life insurance with an investment savings element and low premiums like term life insurance. Most universal life insurance policies contain a flexible premium option. However, some require a single premium (single lump-sum premium) or fixed premiums (scheduled fixed premiums).

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