3b - Policies Provisions

the insured will continue to receive dividends just as if the insured were still making the payments themselves.

Even though premiums are waived because of the disability,

decreasing term rider

Additional coverage can be added to a Whole Life policy by adding a(n):

Insuring clause

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:

the reinstatement

In cases where a policyowner wishes to reinstate a lapsed policy, which provision allows the policyowner to do so with some limitations.

upon reinstatement of a lapsed policy.

Most insurers require evidence of insurability be provided

a child term rider. Submit

One of the best methods of adding coverage for a child on a parent's life insurance policy is to add

Return of premium rider

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?

$50,000

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?

Living Benefit

The Accelerated Death Benefit provision in a life insurance policy is also known as a(n):

added to the total debt.

Interest on a loan which is not paid when due

Term rider

allows the applicant to have excess coverage

ownership clause

a provision that indicates who is the policyowner and provides a general description of the owner's rights.

Unpaid interest from a policy loan is

added to the loan balance if not paid by the due date.

Misstatement of Age provision

policy specifies that the insurance proceeds will be adjusted to a reduced amount.

An AD&D clause

provides benefits for death due to an accident or for the loss of one or more hands, feet, arms, legs, or loss of sight.

A decreasing term

rider can add additional coverage to a whole life policy.

Waiver of Premium

rider on a life insurance policy that guarantees that the premium will be paid if the insured is disabled for a specified period of time.

Variable Life

A life insurance policy that has a level premium but allows the policyowner to choose from a selection of investment options

additional Whole Life coverage at specified times

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

who is the policyowner and provides a general description of the owner's rights.

The ownership clause in a life insurance policy is a provision that indicates

Reinstatement

The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called:

Guaranteed Insurability Rider

This rider provides specific dates on which additional life insurance policies can be bought without providing proof of insurability.

Assign policy ownership to the bank

What action can a policyowner take if an application for a bank loan requires collateral?

Extended Term, Reduced Paid-up, Cash Surrender (NOT Life Income)

example of a Nonforfeiture option

Decreasing Term

may NOT have the Automatic Premium Loan provision attached to it?

Waiver of Premium

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Paid-Up Additional Insurance

A young, married teacher has two children and owns a Whole Life policy. If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options?

Beneficiary will be paid the Death Benefit; The incontestable clause prevents the insurer from canceling the contract even for a material misrepresentation.

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take?

Void the policy only if it is discovered during the Contestable period and proven to be material

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

Variable Whole Life Insurance can be described as:

both an insurance and securities product

automatic premium loan

to keep the policy from lapsing.

A long term care rider

triggered by the insured's inability to perform two or more activities of daily living.