Quiz chapter 3

Under which of the following circumstances would an insurer pay accelerated benefits?

An insured is diagnosed with cancer and needs help paying for her medical treatment.

which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

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

Guaranteed Insurability rider

Which of the following riders is often used in business life insurance policies when the policyowner needs to change the insured under the policy?

Substitute insured rider

All of the following are dividend options EXCEPT.

Fixed-period installments

A father purchases a life insurance policy on his teenage daughter and adds the Payor benefit rider. In which of the following scenarios will the rider waive the payment of premuim?

If the father is disabled for more than 6 months.

Under an extended term nonforfeiture option, the cash value is converted to.

The same face amount as in the whole life policy.

if an insured continually uses the automatic premium loan option to pay the policy premium,

the policy will terminate when the cash value is reduced to nothing