ch 2 exam Policy Provisions, Options and Riders

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?

$4,000

If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies?

A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age

What is an insurer required to do when faced with an error made under the Misstatement of Age provision?

Pay age-corrected benefits

Which situation accurately describes a reduced paid-up nonforfeiture option?

Policy has a decreased face amount

Which of the following is a reinstatement condition?

Proof of insurability

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?

Reduction of premium dividend option

All of these are common exclusions to a life insurance policy EXCEPT

accidental death

An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply?

age

Ownership of a life insurance policy may be temporarily transferred with a(n)* collateral assignment

collateral assignment

Life insurance policies will normally pay for losses arising from

commercial aviation

All of these are standard exclusions found in a life insurance policy EXCEPT

disability

A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT

fare-paying passenger

· The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid

minus indebtedness and without interest

In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST

provide evidence of insurability to the insurer

The two major actions required for a policyholder to comply with the Reinstatement Clause are

provide evidence of insurability, pay past due premiums

Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?

results

an endorsement found in an insurance plan which modifies the provisions of the policy is called a .

rider

The free-look provision gives the policyowner

the right to return the policy for a full refund within a specified number of days

A whole life insurance policy accumulates cash value that becomes the policy loan value which the insured may borrow against

· the policy loan value which the insured may borrow against


Kaugnay na mga set ng pag-aaral

Botany- Root, specialized stems, flower, fruit, and inflorescences

View Set

Questions sur la solitude et la depression

View Set

Chapter 1 The Manager and Management Accounting MC

View Set

BIOL 1010-Photosynthesis Study Guide; Chp.5

View Set

Family Education Rights and Privacy Act of 1974 (FERPA)

View Set

The Organs of the Human Body- SC.5.L.14.1

View Set