Which of the Following Statements Is True in Relation to the Net

Multiple Choice

Which of the following statements is true in relation to the net payment index?

A) The net payment index always represents the most accurate reflection of the true cost of a policy for use in comparing the cost to that of other policies,
B) The net payment index is a measure of expected inflation in the future cost of insurance premiums,
C) The net payment index is computed using several factors, including the future value of premiums paid and the policy dividends expected to be received,
D) The premiums paid are indexed net of overhead costs charged by the insurer.