Life Policy Provision, Riders, and Options

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusions clause.

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 of the following statements is TRUE concerning irrevocable beneficiaries

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

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

What required provision protects against unintentional lapse of the policy?

Grace period

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

It has the highest amount of insurance protection.

Which is true about a spouse term rider?

The rider is usually level term insurance.

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration.

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

Other-insured rider.

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 nonforfeiture option has the highest amount of insurance protection?

Extended Term

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

6 months

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?

February 28th, or 10 days after the time the policy is delivered.