Chapter 4: Policy riders provision etc.

Which is not true about beneficiary designations

The beneficiary must have insurable interest in the insured.

which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium

automatic premium loan

Which of the following statement is true about a policy assignment

it transfers rights of ownership from the owner to another person

which of the following staements is true regarding the accidental death rider?

it will pay double or triple the ace amount

An insured purchased a 15 year level term policy with a face amount at 100,000. the policy contained an accidental deathrider, offering a double indemnity benefit. the insured was severely injured in an aoutomobile accident and after weels of hospitalization died. How much would the beneficiary receive?

200,000

an insured purchases a life insurance policy naming his wife as primary beneficiary and daughter as contingent beneficiary under what circumstances would the daughter collect the death benefit?

The wife predeceases the insured

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

consideration

If a life insurance policy has an irrevocable beneficiary designation,

the beneficiary can only be changed with written permission of the benficiary

the validity of coverage of a policy cannot be contested except for nonpayment of premium after the policy has been in force for how many year at least?

2 years

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

waiver of premium

what happens when a policy is surrendered for its cash value

coverage ends and policy cannot be reinstated

what type of insurance would be used for a return of premium rider

increasing term

The policyowner pays for her life insurance annually. until now she has collected nontaxable dividents each year however she has decided to use this years dividends to help pay for her premium. which option would let her do this?

reduction of premium

all of the following are true regarding the accumulation at interest option except

the interest is not taxable since it remains inside the insurance policy

all of the following are true regarding the garanteed insurabilty rider except?

the rider is available to all insureds with no additional premium