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NEW QUESTION: 1
Which of the following statements regarding variable life insurance policies is false?
A. Insurance companies are required to give variable life policyholders at least 24 months from the date of purchase to switch to a traditional whole life policy without having to prove insurability.
B. Policyholders have voting rights similar to those of mutual fund investors.
C. The surrender value of a variable life insurance policy will always be less than its cash value.
D. Most policies have an expense guarantee provision that establishes a firm limit on how much the insurance company can increase administrative charges.
Explanation: The false statement regarding variable life insurance policies is that the surrender value of a variable life insurance policy will always be less than its cash value. The surrender value of a variable life insurance policy is its cash value.
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