Life: (#1, 60%) — Policy riders, Provisions, Options, and Exclusions

*The insured under a $100,000 life insurance policy with a triple indemnity rider For accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity writer in the policy specifies that a death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive? $0* $50,000 (50% of the policy value) $100,000 $300,000 (triple the amount of policy value)

$100,000 — The triple indemnity accidental death rider makes the insurer obligated to pay three times the face amount of the policy if the insured dies as a result of an accident that must be accidental and not contributed to by any other factors and must occur within 90 days of the accident.

Apology on her fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision? Incontestability. Assignment Automatic premium loan Waiver of premium

Automatic premium loan

Astro and insured received an annual life insurance dividend check. What term best describes this arrangement? Accumulation at interest Cash option Reduction of premium Annual dividend provision*

Cash option - the cash option allows the insurer to send the policyholder an annual, nontaxable dividend check

*All of the following are dividend options except... Reduction of premium Paid up Additions Fixed period Installments Accumulated at interest*

Fixed period Installments — this is a settlement option and not one of the dividend options

*If a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without providing insurability, the policy includes a... Nonforfeiture option Guaranteed insurability Ryder Paid up additions option* Cost of living provision

Guaranteed insurability rider — allows the policy owner to purchase specific amounts of additional insurance as a civic dates or events without providing continued insurability. Rates for the additions are based upon attained age

*Life income joint and survivor settlement option guarantees... Payment of interest on death proceeds Pay out of the entire death benefit Equal payments to all recipients Income for two or more recipients until they die

Income for two or more recipients until they die

Which of the following statements about the reinstatement provision is true? It guarantees the reinstatement of a policy that has been surrendered for cash It requires a policy owner to pay all overdue premiums with interest for the policy is reinstated The permits the reinstatement within 10 years after the policy has lapsed He provides for reinstatement of a policy regardless of the insured's death

It requires a policy owner to pay all overdue premiums with the interest before the policy is reinstated

*Which of the following statements is true concerning the accidental death rider? It is also known as a triple indemnity rider* The rider is only available to insureds over the age of 65 It is only available in group Insurance It will pay double or triple the face amount

It will pay double or triple the face amount - the accidental death rider pays two or three times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called Fixed amount Joint life Join me in survivor Fixed period

Joint and survivor

*A rider attached to a life insurance policy that provides coverage on the insured's family members is called the... Juvenile rider Payor rider Other insured rider Change of insured rider

Other insured rider — Useful and providing insurance for more than one family member. The type of insurance offered by this writer is usually term insurance, with the right to convert to permanent insurance

A couple owns a life insurance policy with the children's term Ryder. Your daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following would she need to provide the proof of insurability? Proof of insurability is not required Medical exam Her parents federal income tax receipts Medical exam and parents medical history

Proof of insurability is not required

The interest earned on a policy dividend is... Nontaxable Tax deductible 40% taxable, similar to a capital gain Taxable

Taxable

*Children's riders attached a whole life policies are usually issued as what type of insurance? Adjustable life* Whole life Term Variable life

Term - children's term riders provide Turman Sherance with coverage expiring when the minor reaches a certain age

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, He chose the life income settlement option. The amount of payments will be determined by taking into account all of the following except... The beneficiaries life expectancy Projected interest rates Face amount of the policy The insured's age at death

The insured's age of death — age and death will not be considered but the longer the life expectancy is of the recipient, the lower the payments will be

Which is true about a spouse term rider? Coverage is allowed for an unlimited time The rider is decreasing term insurance The coverage is allowed up to age 75 The rider is usually level term insurance

The rider is usually level term insurance