CA Life and Health Chapter 6 Life Policy Riders Multiple Choice

As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal? A) 4 B) 6 C) 8 D) 12

C) 8

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change? A) Inflation rider B) Cost of living rider C) Value Adjustment Rider D) Return of Premium Rider

B) Cost of living rider

What is the waiting period on a Waiver of Premium rider in life insurance policies? A 30 days B) 3 months C) 5 months D) 6 months

D) 6 months

Every long-term care insurer in California must submit to the Commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of long-term care insurance. These submitted agent lists must be updated at least A) Monthly B) Quarterly C) Annually D) Semiannually

D) Semiannually

All of the following are features and requirements of the Living Needs Rider EXCEPT A) Diagnosis must indicate that death is expected within 3 years B) It is usually available at no additional charge C) The remainder of the policy proceeds is payable to the beneficiary at the insured's death D) It provides funds for medical and nursing home expenses to a terminally ill insured

A) Diagnosis must indicate that death is expected within 3 years

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive? A) 0 B) 50,000 (50% of the policy value) C) 100,000 D) 300,000 (triple the amount of policy value)

C) 100,000

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? A) Nonforfeiture options B) Guaranteed insurability option C) Dividend option D) Guaranteed renewable option

B) Guaranteed insurability option

Which of the following statements is TRUE concerning the Accidental Death Rider? A) This rider is only available to insureds over the age of 65 B) It is only available in group insurance C) It will pay double or triple the face amount D) It is also known as the triple indemnity rider

C) It will pay double or triple the face amount

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index is called A) Payor rider B) Cost of living rider C) Accelerated benefit rider D) Living need rider

B) Cost of living rider

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive A) Monthly premium waiver and monthly income B) Percentage of medical costs paid by the insurer C Payments for life D) Yearly premium waiver and income

A) Monthly premium waiver and monthly income

Which of the following annuity riders ensures investors will receive a set amount of income annually? A) Guaranteed Minimum Income Benefit B) Guaranteed Minimum Accumulation Benefit C) Guaranteed Lifetime Earnings D) Guaranteed Lifetime Withdrawal

A) Guaranteed Minimum Income Benefit

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index is called A) Accelerated benefit rider B) Living need rider C) Payor rider D) Cost of living rider

D) Cost of living rider

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? A) Guaranteed minimum income B) Guaranteed minimum accumulation C) Guaranteed lifetime earning D) Guaranteed lifetime withdrawal

D) Guaranteed lifetime withdrawal

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary? A) It will not affect the benefits paid to the beneficiary B) It will reduce the benefits by 70% C) It will increase the benefits paid to the beneficiary D) It will decrease the benefits paid to the beneficiary

D) It will decrease the benefits paid to the beneficiary

The Waiver of Cost Insurance rider is found in what type of insurance? A) Whole life B) Joint and Survivor C) Juvenile Life D) Universal Life

D) Universal Life

All of the following topics may be included in the continuing education requirement for long-term care insurance EXCEPT A) Alternatives to the purchase of private long-term care insurance B) The effect of inflation in eroding the value of benefits and the importance of inflation protection C) Sales techniques and overcoming client objectives in the purchase of long-term care insurance D) Available long-term care services and facilities

C) Sales techniques and overcoming client objectives in the purchase of long-term care insurance

All of the following are the responsibilities of every long-term care inusrer in California EXCEPT A) Submit to the Commissioner a list of all agents authorized to solicit individual consumers for the sale of long-term care insurance B) Provide enough business to solicit long-term care insurance C) Establish marketing procedusre to assure that any comparison of policies will be fair and accurate D) Establish marketing procedures to assure excessive insurance is not sold or issued

B) Provide enough business to solicit long-term care insurance

All of the following are true regarding the guaranteed insurability rider EXCEPT A) The insured may purchase additional insurance up to the amount specified in the base policy B) It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events C) This rider is available to all insureds with no additional premium D) The insured may purchase additional coverage at the attained age

C) This rider is available to all insureds with no additional premium

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called A) Waiver of premium B) Guaranteed insurability C) Guaranteed insurability D) Payor benefit

A) Waiver of premium

All of the following are the responsibilities of every long-term care insurer in California EXCEPT A) Establish marketing procedures to assure excessive insurance is not sold or issued B) Submit to the Commissioner a list of all agents authorized to solicit individual consumers for the sale of long-term care insurance C) Provide enough business to solicit long-term care insurance D) Establish marketing procedures to assure that any comparison of policies will be fair and accurate

C) Provide enough business to solicit long-term care insurance

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called A) waiver of cost of insurance B) Accelerated benefits C) Cost of living D) Guaranteed insurability

D) Guaranteed insurability

A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called A) Accelerated Benefit provision B) Viatical Settlement provision C) Automatic premium loan provision D) Waiver of maturity provision

A) Accelerated Benefit provision

What is the purpose of annuity riders? A) To provide more annuity products to consumers B) To allow an annuity to build cash value C) To increase the cost of an annuity D) To allow investors to obtain additional benefit

D) To allow investors to obtain additional benefit

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a A) Nonforfeiture option B) Guaranteed insurability rider C) Paid-up additions option D) Cost of living provision

B) Guaranteed insurability rider

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement? A) 0 B) 100,000 C) 200,000 D) 100,000 plus the total of paid premiums

C) 200,000

The Waiver of Cost Insurance rider is found in what type of insurance? A) Joint and Survivor B) Juvenile life C) Universal life D) Whole life

C) Universal life