Life Insurance Policy Provisions, Options and Riders

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

$9,800

The law states that an insurer is allowed to pay the entire Death Benefit to the insured if they qualify to use the Accelerated Death Benefit Rider; however, most insurers limit the amount of the Death Benefit paid to

50%

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

6 Months

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner?

Cash surrender

Which of the following may contribute to proof of death for the purposes of insurance benefits payment?

Death Certicicate

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up option

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

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

Reduced paid-up

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Return of premium

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary

The Ownership provision entitles the policy owner to do all of the following EXCEPT

Set premium rates

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

An absolute assignment is a

Transfer of all ownership rights in a policy.

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal life

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