A legal reserve in life insurance is a result of A) premium taxes pay
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 policyholders.
C) inadequate premiums in the early policy years being subsidized by investment earnings.
D) excess premiums in the early policy years being invested at compound interest.
ANSWER
Answer: D
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.