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All of the following are standard life insurance policy nonforfiture options EXCEPT

1 YR term insurance option

The most common guaranteed insurability riders allow additional life insurance to be purchased on the insured within a range of ages. The common age range in which guaranteed insurability is available is from

25 to 40

John stopped paying premiums on his permanent life insur policy 8 years ago though he never surrendered it. He is still insurable and has no outstanding loan against the policy. The company will decline to reinstate the policy because the time limit for reinstatement has expired. The limit usually is

3 years or as long as 7 years

Which of the following statements regarding the assignment of a life insurance policy is NOT correct?

All beneficiaries must expressly approve any assignments of life insurance policies

Which of the following is stated in the consideration clause of a life insurance policy?

Amount and frequency of premium payments

Which of the following statements regarding a cost of living rider of a life insurance policy is CORRECT?

An inflation index, CPI, determines the amount of inflation adjustment that is made to the policy

In which of the following situations does the INCONTESTABLE clause apply

Concealment of smoking

Which of the following is a common life insurance policy exclusion?

Death from war

Which provision of a life insurance policy states that the application is part of the contract?

Entire contract clause

Which life insurance provision allows the policyholder to inspect and if dissatifsified to return the policy for a full refund?

Free look

Which of the following allows 30 days during which premiums may be paid to keep policies in force?

Grace period

Each of the ...incontestable clause in a LIP is correct EXCEPT

Insurers can void a contract even after the specified period, provided they can prove the policy was purchased fraudulently

Which of the following statements best describes life insurance policy dividends?

Policy dividends are an intentional return of a portion of the premiums paid

An error in age is discovered after the death of an insured but before the policy death proceeds are distributed. The insured was older than previously assumed. How would a company handle it?

The amount of death proceeds would be reduced to reflect whatever benefit the premium paid would have purchased at the correct age.

Ron dies during the grace period. What happens considered the premium on the policy has not been paid?

The amount of the premium is deducted from the policy proceeds paid to the beneficiary

To what period would a 14 day free look provision apply in FLorida?

The first 14 days after the issued policy has been received by the insured

All of the following assignment of a life insurance policy are correct EXCEPT

The policyowner must obtain approval from the insurance company before a policy can be assigned

Which of the following statements about a LIPs cash value is CORRECT

When a whole life insurance policy is active, the owner can borrow from the cash value

The rider that provides for a waiver of premiums on a juvenile policy if the adult payor dies or becomes disabled is

a payor rider

All of the following statements pertaining to reinstatement of a life insurance policy are correct EXCEPT

a suicide exclusion period is renewed with a reinstated policy

Leland elects to surrender his whole life policy for a reduced paid-up policy. The cash value of his new policy will

continue to increase

If an error is discovered after an insured dies and the insured was younger than the insurance policy stated, the insurance company will

increase the death benefits

If an error is discovered while an insured is living and the insured is older than the policy states, the insurance company can

increase the premium

If an insurance company determines that the insured is totally disabled, the policyowner is relieved of paying the policy premiums as long as the disability continues. This statement describes

the waiver of premium rider