life and health #3
revocable
whaat type of beneficiary can be changed at any pint by the policyowner?
entire contract
whan life insurance policy provision states that both the policy and a copy of the application form the contract between the policyowner and the insurer?
return of unused premiums
what are policy dividends?
statements made by the applicant that are true
what are representations on life insurance applications?
within 1st 2 years
when can an insurance company use suicide as a defense against paying a death claim?
when primary beneficiary dies before the insured
when will a contignent beneficiary receive death benefit from a life insurance policy?
when it may alter underwriting decision
when would a missrepresentation be considered material?
absolute assignment
which of the two types of policy assignments requite transfer of all ownership rights in the policy to a thirn pary?
policyowner
who controls changes in premium payments, face values and loans in a life insurance policy?
policyowner
who has the right to the cash value of a life insurance policy?
cash value converted to face amount
what happens to a policy's cash value under an extended term nonforfeiture option?
applied to next years premium
with the reduction of premium dividend option, how is the dividend used?
benefit will be adjusted to age
an applicant for life insurance misstated her age on the policy application. how will this affect the death benefits?
pay a reduced death benefit
an insurer has discovered a representation on a life insurance policy application regarding the insured's age. the insured is 10 years older that he stated. what will the insurer due regarding the death benefit/.
yes
an isnured purchased a life policy, and then commited suicide 5 yeras later, will th ecompany ay the death benefit to the beneficiary?
lum-sum payment
if a settlement option is not chosen by the policyowner or the beneficiary, what option will be used by the insurer?
the longer he period the longer the installment
in the fixed period settlement option, how will the number of installments for the death benefit proceeds determine the amount of the installments?
no
is the beneficiary requred to have insurable interest in the insured?
representations
statements on the application made by an applicant for a life insurance policy are known as what?
it will be paid to the insured's estate
the sole beneficiary of a life insurance policy dies before the insured. if the policyowner does not amend the beneficiary desgntation, what will happen to the policy death benefits?
copy of original application
to meet the requirement of the entire contract policy provision, an insureance policy must contain what?
cash surrender
under what nonforfeiture option option does the company pay the policy's surrender value and have no further obligation to the policyowner?
extended term
waht nonforfeiture option is automatically selected by the company if not chosen by the policyowner?
cash. reduced premium, accumulation at interest, paid-up aditions, paid-up options, one-year term, acceleration fo endowment
what are the dividend options in life insurance policies?
militay, hazarous occupation, aviation
what are the most common exclusions in life insurance policies?
cash surrender, reduced paid-up, extended term
what are the three nonforfeiture options in life insurance policies?
primary beneficiary
what beneficiary designation has first claim to the death proceeds of a life insurance policy?
paid-up additions
what dividend opotion can increase the death benefit of the existing life policy?
paid-up additions
what dividend option is aoutmatically selected by the company of not chosen by the policyowner?
the contingent beneficiary
what does the common disaster clause protect?
the insurer will pay a benefit of twice the face amount
what does the term 'double indemnity' mean?
they go to insured's estate
what happens to the proceeds of a life insurance policy if there is no named beneficiary?
promise to pay benefits
what is consideration on the part of the insurer?
premius will be set according to original age
what is the advantage of reinstating a life insurance policy as opposed to applying for a new one?
if beneficiary dies shorly after the payments begin, the balance of the principal will be rofeited
what is the desadvantage of selecting the life income settlement option?
only interest is paid to beneficiary
what is the interest only settlement option, what happens to the policy's death benefit?
onther- insured rider
what is the name for a life insurance policy rider that provides coverage on the insured's family members?
to allow the insured to return the policy with full refund
what is the purpose of free-look period?
determine how beneficiary will be paid
what is the purpose of settlement options in life insurance policies?
incontestability
what life insurance policy provision prevents an insurer from disputing or denying claim dure to misstatements on the application after a certain period of time?
waiver of premium
what life policy rider allows the company to forgo collecting the premium if the insured becomes disabled?
reduced paid-up
what nonforfeiture option provides coverage for the longest period of time?
reinstatement
what provision allows the policyowner to reactivate a lapsed life insurance policy within a specified period of time with proof of insurability?
grace period
what provisions in a life insurance policy extends coverage beyond the premium due date?
grace period
what required provision protects against unintentional policy lapse?
lump-sum/cash, fixed period, fixed amount, life income, interest only
what settlement options are available in life insurance policies?
settlemetn options
what term is used to describe methods of payment of the death benefit to the beneficiary upon the insured's death?
collateral assignment
what type of assignment is used to secure the paymet of a debt with an exiting life insurance policy?
contingent beneficiary
what type of beneficiary is next in lin after the primary beneficiary/
