Ordinary life insurance, synonymous with whole life insurance, is a level premium permanent insurance product that accumulates a cash value (or reserve) over time. By design, the cash value grows and, at the policy’s maturity (typically age 100 or 121, depending on the policy), equals the face amount of the policy, at which point the policy endows (pays out the face amount to the policyowner if the insured is still alive).
Option A: Correct. The cash value (reserve) in a whole life policy eventually equals the face amount at maturity.
Option B: Incorrect. Dividends are paid only in participating policies, not all whole life policies, and are not guaranteed.
Option C: Incorrect. The cash value continues to earn interest or grow, typically at a guaranteed rate, until maturity.
Option D: Incorrect. There are no mandatory cash value distributions; policyowners can choose to access the cash value.
This question aligns with the Prometric content outline under “Life Products,” which covers the cash value accumulation in whole life insurance.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: General Knowledge – Life Insurance)., Oklahoma Insurance Department, Title 36 O.S. § 4029 (nonforfeiture benefits and cash value)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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