cheese unit 2 p2

S buys a $20,000 whole life policy with a $20,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary

$20,000

L, has a $25,000 whole life policy with an accidental double indemnity AD&D. But dies from a heart attack. How much will the insurance company pay the beneficiary

$25,000

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?

$50, 000

P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba- related accident in 2011. What will the insurer pay to P's beneficiary?

$50,000

S buys a $50,000 whole life policy with a $100,000 Accidental Death and dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

$50,000

A life policy loan in Florida cannot charge a fixed rate of interest higher than?

10%

Free look is?

14 Days

The automatic premium loan provision is designed to?

Avoid a policy lapse

S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT

Beneficiaries age

S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT?

Beneficiary's age

How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? *

Claims are denied under the Suicide clause of the policy

A long-care rider pays health care if insured is

Confined to a nursing hom

The incontestable clause allows an insurer to

Contest a claim during the contestable perio

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

Exclusion

What can increase the amount of coverage?

Guaranteed insurability

The husband, insured, listed his wife as the primary beneficiary and his son as the contingent beneficiary. If the husband and wife are involved in a fatal car accident and both killed in the same accident. Under the Common Disaster provision, who will receive the death benefit?

His son

Which of the following is NOT included under long-term care insurance?

Hospital acute care

. What is being delivered during a policy delivery

Insurance contract to the proposed insured

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

What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision?

Insured must be under a physician's care

The primary beneficiary died before the insured. Where are the death proceeds to be paid to?

Insured's contingent beneficiary

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

Insuring clause

How are dividends treated in regards to income tax?

Interest accumulations is taxed

A policy owner's rights may be limited under which designation?

Irrevocable

Which of these is NOT considered to be a right given to a policy owner? *

Modify a provision in the insurance contract

Dividends are treated as follows:

Nontaxable

Which statement is true regarding a minor beneficiary

Normally, a guardian is required to be appointed in the beneficiary clause of the contract

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to?

P only

If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely? *

Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision

Payor Provision

if a parent is paying the premium on a child's life insurance policy and they die, which provision continues the policy?

Payor benefits

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the? * 0/1

Policy proceeds

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? *

Policy was returned within the free-look period, premium will be fully refunded

Which of the following would NOT be a reason for purchasing life insurance on a child's life?

Provide benefits for the child if the parents die

K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation?

Reinstatement

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

Reinstatement

he provision that can be used to put an insurance policy back, 1 year later due to nonpayment is called?

Reinstatement

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

Reinstatement provision

Who may choose the settlement option for a life insurance policy?

The contract owner

If an insured and primary beneficiary died in the same accident and there's no contingent beneficiary listed. Who will received the proceeds?

The insured's estate

If the client takes out a loan against the cash value of his life insurance policy and does not pay it back, what will happen

The loan will accrue interest

W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?

The proceeds would be reduced based on whatever the premium would have been if purchased at age 59

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

Waiver of premium

Which of the following riders prevents a policy from lapsing If the insured owner has been totally disabled for a predetermined period

Waiver of premium

. What does the ownership clause in a life insurance policy state

Who the policy owner is and what rights the policy owner is entitled to