Life Insurance Chapter 4

which nonforfeiture has the highest amount of insurance protection?

Extended term

an insured purchased a life insurance policy in 2010 and died in 2020. the insurance company discovers at the time that the insured has misstated information about her insurance history on the application. what will the insurer do?

Pay the death benefit

a father owns a life insurance policy on his 15 year old daughter. The policy contains the optional payor benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21

the accelerated benefits provision will provide for an early payment of the death benefit when the insured

becomes terminally ill

which of the following best describes fixed period settlement options?

both the principal and the interest will be liquidated over a selected period of time

according to the entire contract provision, what document must be made part of the insurance policy?

copy of the original application

the provision which states that both the policy and a copy of the application form the contract between the policy owner and the insurer is called the

entire contract

During partial withdrawal from a universal life policy, which portion will be taxed?

interest

which of the following is true of a childrens rider added to an insured's permanent life insurance policy?

it is term coverage that is convertiable to permanent insurance at or prior to the child reaching the maximum coverage age

what is the advantage of reinstating a life insurance policy as opposed to applying for a new one?

the original age is used for premium determination

an insured stops making payments on a loan taken from his cash value policy. what will most likely happen?

the policy will terminate when the loan amount with interest equals or exceeds the cash value

what is true about warranties?

they are gaurenteed to be true

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