Quiz 4

All of these statements concerning Settlement Options are true, EXCEPT:

Only the beneficiary may select

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

Owner's Rights

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 a Juvenile life insurance policy?

Payor Benefit rider payor benefit rider provides for waiver of premium if the adult-payor of the policy dies or becomes totally disabled.

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disabled

Payor clause

Has the right the charge a life insurance policy's beneficiary

Policyowner

A rider may be used to include coverage for children under their parents life insurance policy

Term

The free-look provision begins

Upon receipt of the policy by the policyowner

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

Variable Universal Life

What is the Suicide provision designed to do?

safeguard the insurer from an applicant who is contemplating suicide

A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is referred to as a rate loan.

variable

A policyowner may generate taxable income from which of the following Dividend Options?

Accumulation at interest

Which of these are NOT an example of Nonforfeiture option?

Life Income

The Consideration clause in a life insurance contract contains what pertinent information

Amount of premium payments and when they are due

The Consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued

All of these statements about the Waiver of Premium provision are correct EXCEPT

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

In a life insurance contract, an insurance company's promise to pay states benefits is called the

Insuring clause

A cost of living rider gives the insured

additional death benefits

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

exclusion

A Nonforfeiture clause gives the policyowner

guaranteed values even if the policy has lapsed