Insurance: CH.6
After a back injury, an insured is disabled for a year. His insurance policy carries a disability income benefit rider. Which of the following benefits will he receive? a. monthly premium waiver and monthly income b. payments for life c. yearly premium waiver and income d. percentage of medical costs paid by the insurer
a
Riders that decrease the death benefit a. accelerated living benefits b. AD&D c. guaranteed insurability d. return of premium
a
What do you find in the insuring clause? a. amount of death benefit b. premium to be paid c. length of coverage d. parties to the contract
all 4
All of the following are true regarding the guaranteed insurability rider except a. the insured may purchase additional insurance up to the amount specified in the base policy b. this rider is available to all insureds with no additional premium c. the insured may purchase additional coverage at the attained age d. it allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events
b
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? a. dividend options b. guaranteed renewable option c. nonforfeiture options d. guaranteed insurability option
b
If an insurance company realizes that an insured lies and the insured dies, there will be a smaller death benefit payout. true or false
true
If the guaranteed insurability rider is used, the premium is going to increase true or false?
true
An insured purchased a 15 year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. How much will the beneficiary receive from the policy? a. $100,000 plus the total of paid premiums b. $200,000 c. $100,000 d. $0
b
Every long-term care insurer in California must submit to the commissioner a list of all agents or other insurer representatives authorized to solicit individual customers for the sale of long term care insurance. These submitted agents lists must be updated at least a. monthly b. semiannually c. quarterly d. annually
b
Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? a. guaranteed lifetime earning b. guaranteed lifetime withdrawal c. guaranteed minimum accumulation d. guaranteed minimum income
b
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the consumer price index, is called... a. accelerated benefit rider b. living need rider c. cost of living rider d. payor rider
c
As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal? a. 4 b. 12 c. 8 d. 6
c
If a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a a. nonforfeiture option b. cost of living provision c. guaranteed insurability rider d. paid up additions option
c
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called a. guaranteed insurability b. waiver of cost of insurance c. waiver of premium d. payor benefit
c
What is the waiting period on a waiver of premium rider in life insurance policies? a. 2 months b. 5 months c. 6 months d. 3 months
c
What is the waiting period on a waiver of premium rider in life insurance policies? a. 5 months b. 3 months c. 6 months d. 30 days
c
Policy owner exclusively has the ownership rights. Whoever is paying the premium is the owner and they ______________.
control the policy
Partial surrender or withdrawals only refer to a. annually renewable life policies b. whole life policies c. term policies d. universal life policies
d
Riders that increase the death benefit are a. accelerated living benefits b. premium rider c. universal rider d. AD&D( accidental death and dismemberment) double/triple indemnity
d
There are _______ types of assignments a. 5 b. 4 c. 3 d. 2
d
What is the purpose of annuity riders? a. to provide more annuity products to consumers b. in crease the cost of an annuity c. to allow an annuity to build cash value d. to allow investors to obtain additional benefit
d
Which of the following annuity riders ensures investors will receive a set amount of income annually a. guaranteed minimum accumulation benefit b. guaranteed lifetime withdrawal c. guaranteed lifetime earnings d. guaranteed minimum income benefit
d
Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? a. guaranteed minimum accumulation b. guaranteed lifetime earning c. guaranteed minimum income d. guaranteed lifetime withdrawal
d
_____________ rider waives the premium for a total disability after a waiting period. a. waiver of insured's expense b. waiver of disabilities c. waiver of cost of insurance d. waiver of premium
d
Policy loans can only be taken out on
policies with cash value