Life Insurance Policies-Provisions, options and Riders Chapter 3

which type of life policy contains a monthly mortality charge as well as self directed investment choices

variable universal life

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

Pay face amount minus past due premium

A policy loan is made possible by which of these life insurance policy features?

cash value provision makes a policy loan possible

D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with?

extended term

the accidental death and dismemberment provision in a life insurance policy additional benefits if the insured

is blinded in an accident

The Accelerated Death Benefit provision in a life insurance policy is also known as a(n)

living benefit

all of these statements concerning settlement options are true, except:

only the beneficiary may select: the policy owner

the option that provides an additional death benefit for a limited amount of time at the lowest possible cost is call:

accidental death and dismemberment rider (AD&D)

when does a guaranteed insurability rider allow the insured to buy additional coverage

at future dates specified in the contract with no evidence of insurability required

Which rider provides coverage for a child under a parent's life insurance policy?

child term rider

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

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

decreasing term- the automatic premium loan provision can be incorporated into all of these polices except this one

Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?

entire contract provision

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

ex wife is still beneficiary

in a life insurance policy which provision states who may select policy options ,designation beneficiary, and be the recipient of any financial benefits from the policy

owners rights

which statement is true in regard to a policy loan

pat due interest on a policy loan is added to the total debt

Which life insurance rider typically appears on a Juvenile life insurance policy?

payor benefit rider

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the

policy - loan provision

which of these types of life insurance allows the policy owner to have level premiums and to also choose from a selection of investment options

variable life- a life insurance policy that has a level premium but allows policy owner to choose from a selection of investments

An insurer may normally delay the payment of a cash value loan or surrender value for up to

6 months