Life section 4
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
What limits the amount that a policyowner may borrow from a whole life insurance policy?
Cash value
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
an Insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceases the insured
The policyowner wants to make sure that upon his death, The life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which is settlement option should the policy owner choose?
Interest only option
Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy? A) it begins when the policy is delivered B) it begins when the application is signed C) it applies only to term life insurance policies D) it is optional on all life insurance policies
It begins when the policy is delivered
In a case where the primary beneficiary predeceases the insured, in the even of the insured's death, the death benefit proceeds will be paid to
The contingent beneficiary
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
Which of the following best describes fixed-period Settlement option A) The death benefit must be paid out in a lump sum within a certain time period. B) income is guaranteed for the life of the beneficiary C) both the principal and interest will be liquidated over A selected period of time D) only the principal amount will be paid out within a specified period of time
Both the principle and interest will be liquidated over a selected period of time
What would be an advantage to naming a contingent (or secondary) Beneficiary in a life insurance policy?
It determines who receives policy benefits if the primary beneficiary is deceased.
Using a class designation for beneficiaries means
Naming beneficiaries as a group
Which of the following is TRUE about nonforfeiture values? A) A table showing nonforfeiture values for the next 10 years must be included in the policy B) Policyowner's do not have the authority to decide how to exercise nonforfeiture values C) they are required by state law to be included in the policy D) they are optional provisions
They are required by state law to be included in the policy.
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
a fixed amount
The two types of assignments are
absolute and collateral
