Chapter: Individual Life Insurance Contract - Provisions and Options

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection

Which of the following applies to the 1-day-free-look privilege

It permits the insured to return the policy for a full refund of premiums paid

Which of the following settlement options in life insurance is known as straight life?

Life income

Using a class designation for beneficiaries means

Naming beneficiaries as a group

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

In case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

The contingent beneficiary

Which of the following statements is TRUE concerning irrevocable beneficiaries?

They can be changed only with the written consent of that beneficiary

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy

What type of account will most likely be established for a minor?

Trust

How long will the beneficiary receive payments under the single life settlement option?

Until the beneficiary's death