life insurance Policy, Riders etc

Which of these is considered to be a Living Benefit option in a life insurance policy?

Accelerated death benefit

A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?

Disability income rider

Which of these would limit a company's liability to provide insurance coverage?

Exclusion

Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a(n)

Guaranteed insurability rider

When does a life insurance policy's waiver of premium take effect?

Insured becomes totally disabled

Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy?

Interest only

What is an insurance policy's grace period?

Period of time after the premium is due but the policy remains in force

Which of the following is a reinstatement condition?

Proof of insurabiilty

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?

Reduction of premium dividend option

Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?

The policy may be paid up early by using policy dividends

When a life insurance policy is surrendered, how does the cost recovery rule apply?

The policy's cost basis is exempt from taxation

All of these are valid policy dividend options for a life insurance policyowner EXCEPT

accumulate without interest

An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if

the insured outlived the beneficiary

A whole life insurance policy accumulates cash value that becomes

the policy loan value which the insured may borrow against

If an insured dies during the grace period with no premiums paid

the policy would be payable, minus the premium amount

Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires,

the protection ends

Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?

Accumulation at Interest Option

Which of the following is NOT a common life insurance policy rider?

extended term

The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid

minus indebtedness and without interest

A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n)

nonforfeiture provision

The free-look provision gives the policyowner

the right to return the policy for a full refund within a specified number of days