Chapter 5: Individual Life Insurance Contract: Provisions and Options
Trust
What type of account will most likely be established for a minor?
They are required by state law to be included in the policy.
Which of the following is TRUE about nonforfeiture values?
Coverage ends and the policy cannot be reinstated
What happens when a policy is surrendered for its cash value?
Lump Sum
What is the other term for the cash payment settlement option?
It is reduced to the amount of what the cash value would buy as a single premium
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
Equal to the original policy for as long a period of time that the cash values will purchase
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Death on a plane crash for a fare-paying passenger
Which of the following is NOT typically excluded from life policies?
The insured's contingent beneficiary
when a life insurance was issued, the policyowner designated a primary and a contingent beneficiary. several years later, both the insured and the primary died in the same car accident, and it was impossible to determine who died first. which of the following would receive the death benefit?
