Chapter 4

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 hospitalizaton, died from the injuries. How much will the beneficiary receive from the policy

200,000

what is the waiting period on a waiver of premium rider in life insurance policies

6 months

which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?

Long-term care

which of the following is true about the premium on the children's rider in a life insurance policy?

it remains the same no matter how many children are added to the policy

which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

owner's rights

which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

paid-up option

an insured purchased a life policy in 2010 and died in 2020. the insurance company discovers that time that the insured had misstated information about her insurance history on the application. what will the insurer do?

pay the death benefit

which of the following allows the insurer to relieve a minor insured from a premium payments if the minor's parents have died or become disabled

payor benefit

which of the following statements about a suicide clause in a life insurance policy is true?

suicide is covered as long as the policy is in force

a father owns a life insurance policy on his 15-year-old daughter. the policy contains the optional payor benefit rider. if the father becomes disabled, what will happen to the life insurance premiums?

the insured's premiums will be waived until she is 21

the paid-up addition option uses the dividend

to purchase a smaller amount of the same type of insurance as the original policy

an insured owns a life insurance oplicy. to be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. there is a limit for a withdrawal and the insurer charges a fee. what type of policy does the insured most likely have?

universal life

the waiver of cost of insurance rider is found in what type of insurance

universal life

an insured receives an annual life insurance dividend check. what term best describes this arrangement?

cash option

the automatic premium loan provision is activated at the end of the

grace period