Life Provisions

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?

20-Pay life accumulate cash value faster than Straight Life

Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan?

Collateral assignment

Which of the following Nonforfeiture options offers the highest death benifit?

Extended term

All of these statements about the Wavier of Premium provision are correct, EXCEPT:

Insured must be elidable for Social Security disability for claim to be accepted

A Term Life rider offers the insured

Long-term care coverage

In a life insurance policy, which provision states who may select options, designate and name a beneficiary, and be the recipient of any financial benefit from the policy?

Owners Right

K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she chose?

Paid-Up Additional Insurance

Which life insurance rider typically appears on Juvenile life insurance policy?

Payor Benefit rider

Which of the following provisions guarantees that premiums will be waived if Juvenile Life policyowner becomes disabled?

Payor clause

A Provision in a life insurance policy that pays the policyholder an amount that does bot surpass the guaranteed cash value is called the:

Policy loan provision

j let her life insurance policy lapse 8 months ago due to nonpayment. Can he reestablish coverage under which of the following provisions?

Reinstatement provision

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

Variable Life

Which lapse of life policy contains a monthly mortality charge as well as self-directed investment choices?

Variable Universal Life

How do life insurance companies handle cases where the insured commits suicided within the contract stated Contestable period?

claims are denied under the Suicided clause of the policy

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

exclusion

Dividends paid from a life insurance policy are

issued by the Department of Insurance

Which of the following statements is CORRECT about accelerated death benefits?

must have a terminal illness to quality

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?

return of premium rider

A cost of living rider gives the insured

tax incentives