Life Insurance Policy Riders, Provisions, Options, and Exclusions QUIZ
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed insurability rider
Which of the following settlement options in life insurance is known as straight life?
Life income
The interest earned on policy dividends is
taxable
Children's riders attached to whole life policies are usually issued as what type of insurance?
term
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time.
If a settlement option is not chosen by the beneficiary or policyowner, which option will be used?
Lump sum
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
Common disaster clause
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
Fixed amount settlement
All of the following are Nonforfeiture options EXCEPT
Interest only
Which of the following statements about a suicide clause in a life insurance policy is true?
Suicide is excluded for a specific period of years and covered thereafter.
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller.
Life income joint and survivor settlement option guarantees
income for 2 or more recipients until they die
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 is true about a spouse term rider?
The rider is usually level term insurance
