Insurance Sales
policy loan provision
Policy loan is made possible by what life insurance feature?
Reduction of Premium dividend option
The dividend option which reduces the annual premium payment of a life insurance policy is called...
Policy owner
A beneficiary can only be designated by the...
Beneficiary will receive reduced policy benefits
A life insurance company has determined that a recently deceased insured had understated her age at the time of application 5 years prior. How will this affect the insurer's claim disbursement?
Paid up additional Insurance
A young married teacher who has two children and owns a whole life policy. If the teacher wants a increasing death benefit to protect against inflation, the teacher should select what dividend option?
Guaranteed insurability option rider
Allows a policy owner to purchase life insurance coverage at specified dates without providing evidence of insurability?
Exchange Privilege Rider
Allows a policy owner to switch to a new policy in the future if they desire...
No
Can settlement options be selected by the policy owner?
Full face amount - full death benefit listed in the policy.
D was actively serving in the Marines when he was killed in an automobile accident while on leave. his $100,000 whole life policy contains a war exclusion clause....How much will D's beneficiary receive?
Proof of insurability
Example of a reinstatement condition...
Deducted when the policy is discontinued
How are surrender charges deducted in a life policy with a rear - ended loaded provision?
30 Days
How long is the grade period for normal insurance?
Full face amount minus any past due Premiums
If an insured is past due on his life insurance premiums, but is still in the grace period. What will the beneficiary receive is the insured dies during this grace period?
Claim will be denied
N is covered by a term life policy and does not make the required premium payment which was due August 1st - N dies Sept. 15th. What action will the insurer take?
Past due interest on a policy loan is added to the total debt.
Name something about a policy loan...
P will still receive declared dividends
P is insured under a participating life policy. If P's premiums are waived due to a disability what can happen?
Return of Premium rider
S buys a $10,000 whole life policy in 2003 & pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?
$50,000
S buys a $50,000 whole life policy with a $50,000 Accidental death and Dismemberment rider S dies one year later of natural causes. how much will the insurer pay the beneficiary?
Fixed period, Fixed amount, & Life income
Settlement options that involve the systematic liquidation of the death proceeds in the event of the insured's death?
Free-look provision
The right to return the policy within a specified number of days for a full refund.
1) Extended term 2) reduced paid - up 3) Cash surrender
Three examples of Non-forfeiture option are..
1- modified Whole life 2- 20-pay life 3-Endowment
Three types of policies that have the automatic premium loan provision are...
1)Accidental death rider 2)Guaranteed insurability & 3) Cost of living
Three types of riders that can increase the death benefit amount are...
Material and deliberate misrepresentations submitted on the application
Under what circumstances can an insurer contest a life insurance policy according to the incontestable clause?
The automatic Premium loan provision
What allows the policy owner to avoid a policy lapse?
An insurer's basic promise
What does an insuring clause in a life insurance contract establish?
Typically not subject to Federal income taxes
how are dividends from a participating life insurance policy normally treated?
policy loan provision
provision in a life insurance policy that pays the policy owner an amount that does not surpass the guaranteed cash value
Life insurance company will pay the stated death benefit minus the past days premiums and interest if the insured dies during the grace period
A life insurance policy owner falls behind on his premium payments and dies during the grace period How will the insurer handle this claim?
Disability income rider
A life insurance policy owner was injured in an auto accident which results in a total and permanent disability. Which Rider would pay a monthly amount because of his disability? (The rider which pays a life insurance policy owner a monthly amount in the event of total and perm disability)?
Policy Loan provision
A policy loan is made possible by which life insurance policy features?
Absolute Assignment
A policy owner who permanently changes the ownership of a life insurance policy is exercising which contractual option?
Guaranteed insurability option rider
A rider that allows a policy owner to purchase life insurance coverage at specified dates without providing evidence of insurability?
Payor benefit
A rider that is normally associated with a Juvenile Life policy is called a...
The Payor Benefit
A rider that is normally associated with a Juvenile life policy?
After becoming totally disabled
A waiver of premium benefit for a life insurance policy is utilized when the insured...
Insuring clause
An insurance company's promise to pay stated benefits is called the...
Insuring clause
An insurance company's promise to pay stated benefits...
$20,000 Death benefit (because the insured died before the policies maturity).
K pays on a $20,000 20 year endowment policy for 10 years and dies from an auto accident/ how much will the insurance company pay the beneficiary?
Waiver of Premium
Life insurance policy that ensures that the premium will be paid if the insured becomes disables has what kind of rider attached?
Assignment Provision
Life insurance provision that allows the policy owner to change the policy's beneficiary designation is called the...
Variable life insurance
Life insurance type that allows the policy owner to have level premiums and to also choose from a selection of investment options?
Who the policy owner is and what rights the policy owner is entitled to
What does the ownership clause in a life insurance policy state?
Amount of premium payments and when they are due.
What pertinent information does the consideration clause in a life insurance contract contain?
Conversion
What provision allows a policy owner to change a term life policy into a permanent one without providing proof of good health?
Automatic Premium loan - keeps a permanent (whole) life policy from lapsing, when the owner has stopped making premium payments.
When a permanent Life insurance policy's premiums are stopped, which provision is designed to keep the policy from lapsing?
collateral assignment
When a policy owner uses a life insurance policy as collateral for a bank loan?
When the insured dies or at the policy's maturity date, whichever happens first.
When is the face amount of a whole life policy paid?
Insurer
Who does the function of Discretionary provision protect?
