Life Policy Riders

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?

It will decrease the benefits paid to the beneficiary

An insured purchased a 15-year level term life insurance policy with face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The he insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

$200,000

What is the waiting period on a waiver of premium rider in life insurance policies?

6 months: most insurers impose a 6-month waiting period from the time of disability until the first premium is waived.

As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?

8 hours

A provision in a life insurance policy that provides for early payment if some portion of the policy face amount should the insured suffer from a terminal illness or injury called

Accelerated Benefit provision

All of the following are the responsibilities of every long-term care insurer in California EXCEPT A. Provide enough business to solicit long-term care insurance. B. Establish marketing procedures to assure that any comparison of policies will be fair and accurate. C. Establish marketing procedures to assure excessive insurance is not sold or issued. D. Submit to the commissioner a list of all agents authorized to solicit individual consumers for the sales of long-term care insurance.

CORRECT: A. Provide enough business to solicit long-term care insurance.

All of the following are features requirements of the Living Needs Rider EXCEPT A. The reminder of the policy proceeds is payable to the beneficiary at the insured's death. B. It provides funds for medical and nursing home expenses to a terminally I'll insured. C. Diagnosis must indicate that death is expected within 3 years. D. It is usually available at no additional charge.

CORRECT: C. Diagnosis must indicate that death is expected within 3 years.

Which of the following annuity riders ensures investors will receive a set amount of income annually?

Guaranteed Minimum Income Benefit

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. The rider is called

Guaranteed insurability

Which of the following riders added to a life insurance policy can pay part of the death benefit to the insurer to cover expenses incurred in a nursing or convalescent home?

Long-term care

Every long-term care insurer in California must submit to the commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of long-term care insurance. These submitted agent lists must be updated at least

Semiannually

What is the purpose of annuity riders?

To allow investors to obtain additional benefit