Question

Upon surrender of a whole life policy, which has been in force for AT LEAST 3 full years, and within 60 days after the date the premium payment is due and unpaid, the insurer will:

A) Refund all the premiums paid
B) Deduct a surrender charge
C) Pay double the policy's face value
D) Offer a paid-up policy of equal value

Answer 1

Upon surrender of a whole life policy that has been in force for at least 3 full years, the insurer will deduct a surrender charge from the cash value before refunding it to the policyholder.

Step-by-step explanation:

Upon surrender of a whole life policy that has been in force for at least 3 full years, and within 60 days after the date the premium payment is due and unpaid, the insurer will deduct a surrender charge. This means that option B) is the correct answer. When a policyholder decides to surrender their whole life policy, they may receive a cash value that has accumulated over time, but the insurer will deduct a surrender charge from the cash value before refunding it to the policyholder.