Exam FX Test 3

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?

A minor son of the insured

The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

Entire contract.

Which rider, when attached to a permanent life insurance policy, provide an amount of insurance on every family member?

Family term rider

A life insurance policy does not have a war clause. If the insured is killed during a time of war, w hat will the beneficiary receive from the policy?

The full death benefit

Which is true about a spouse term rider?

The rider is usually level term insurance.

Which of the following statements is TRUE concerning irrevocable beneficiaries?

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

Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Amount paid with the accelerated benefit, plus earnings lost by the insurance company in interest income from the accelerated benefit

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

Coverage ends and the policy cannot be reinstated.

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed period

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability clause.

All of the following are Nonforfeiture options

Interest only

Which two terms are associated directly with the premium?

Level or flexible

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

Which of the following is true of a children's rider added to an insured's permanent life insurance policy?

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age

What is the other term for the cash payment settlement option?

Lump sum

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof insurability is provided. Which policy provision allows this?

Reinstatement provision

Which of the following riders is often used in business life insurance policies when the policyowner needs to change the insured under the policy?

Substitute insured rider

Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?

Term rider