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When a policy automatically goes into a nonforfeiture option, it is usually...

A. Canceled immediately.
B. Extended without requiring premium payments.
C. Subject to higher premiums.
D. Converted to a different type of insurance.

User DuttaA
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1 Answer

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Final answer:

A policy going into a nonforfeiture option is generally extended without requiring additional premium payments, using the policy's existing cash value to maintain a limited amount of coverage.

Step-by-step explanation:

When a policy automatically goes into a nonforfeiture option, it is typically extended without requiring premium payments. Nonforfeiture options are a feature of certain life insurance policies that prevent the policy from lapsing even if the policyholder stops paying premiums. Instead of canceling the policy, the insurance company uses the policy's cash value to provide a reduced amount of coverage that continues for a certain period of time or until the cash value is depleted.

User Baronvonbirra
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