Ch.3 Life Policy Riders, Provisions, Options and Exclusions
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?
$100,000
Under which of the following circumstances would an insurer pay accelerated benefits?
An insured is diagnosed with cancer and needs help paying for her medical treatment.
Who has the right to the cash value of a life insurance policy?
The Policy owner
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to
The insured'd estate
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?
A minor son of the insured
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
Collateral assignment
Which of the following is true about the mandatory free look in a Life Insurance policy?
It commences when the policy is delivered.
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.
The sole beneficiary of a life insurance policy dies before the insured. If the policy owner does not amend the beneficiary designation, what will happen to the policy's death benefit?
It will be paid to the insured's estate
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Other-insured rider
What is the name for a life insurance policy rider that provides coverage on the insured;s family members?
Other-insured rider
What nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
What provisions allows he policyowner to reactivate a lapsed life insurance policy within a specified period of time with proof of insurability?
Reinstatement
What are policy dividends?
Return of unused premiums
What happens to the proceeds of a life insurance policy if there is not name beneficiary?
The proceeds go to the estate
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium
What life policy rider allows the company to forgo collecting the premium if the insured becomes disabled?
waiver of premium
What life insurance policy provision states that both the policy and a copy of the application form the contract between the policyowner and the insurer?
Entire contract
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount.
