A client who purchased a variable life insurance policy 15 months ago has suffered a stroke. In addition, he has developed adult onset diabetes. When receiving treatment for the stroke, he was diagnosed with lung cancer. He has decided to convert his variable policy to a whole life policy. Which of the following statements is CORRECT?
he will not be able to exercise any options to purchase additional insurance as his health has deteriorated to such a severe level.
the new policy will bear the same issue date and age as the original policy.
the face amount must remain the same.
the premium will be rated as his health has taken a marked turn for the worse.
A) II and III.
B) I and IV.
C) I, II, III and IV.
D) II, III and IV.
Answer: A) II and III.