Life Policy Riders

b.cost of living rider

A long stretch of national economic hardship causes a 7% rate of inflation. A policy owner 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 to premium rider

d.universal life

The Wavier of Cost of Insurance is found in what type of insurance? a.whole life b.joint and survivor c.juvenile life d.universal life

c.$100,000

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 amount of policy value)

a.monthly premium waiver and monthly income

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.long term care

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? a.long term care b.accidental death c. guaranteed insurability d.payor benefit

a.it will decrease the benefits paid to the beneficiary

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 decrease the benefits paid to the beneficiary. b.it will not affect the benefits paid to the beneficiary. c.it will reduce the benefits by 70% d.it will increase the benefits paid to the beneficiary.

d.it will pay double or triple the face amount.

Which of the following statements is TRUE concerning the Accidental Death Rider? a.it is also known as a triple indemnity rider. b.this rider is only available to insureds over the age of 65. c.it is only available in group insurance. d.it will pay double or triple the face amount.

b.accelerated benefit provision.

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.wavier of maturity provision. b.accelerated benefit provision. c.viatical settlement provision. d.automatic premium loan provision.

a.diagnosis must indicate that death is expected within 3 years.

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 insureds death. d.it provides funds for medical and nursing home expenses to a terminally ill insured.

a.this rider is available to all insureds with no additional premium.

All of the following are true regarding the guaranteed insurability rider EXCEPT a.this rider is available to all insureds with no additional premium. b.the insured may purchase additional coverage at the attained age. c.the insured may purchase additional insurance up to the amount specified in the base policy. d.it allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events.

a.guaranteed. insurability

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.guaranteed. insurability b.waiver of cost of insurance c.accelerated benefits d.cost of living

a.semiannually

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 insurance. These submitted agent lists must be updated at least. a.semiannually b.monthly c.quarterly d.annually