Life Insurance Review
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured death was caused by an accident as defined in the policy?
an accidental death rider
In insurance, an offer is usually made when
an applicant submits an application to the insurer
Which of the following is true about class designation?
beneficiaries are not identified by name
An insurance producer who by contract is bound to write insurance for only one company is classified as a/an
captive agent
A whole life policy is assumed surrendered for a reduced-paid up policy. The cash value in the new policy will
continue to increase
an adjustable life insurance policy can assume the form of
either term or permanent insurance
If an agent follows the rules and the terms of his agent contract, he is exercising his
express authority
If soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do?
inform the insurance company
To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of a loss. What is this concept called?
insurable interest
Within how many days of filing are the applicants required to take their licensing examination?
120 days
Cash value guarantees in a whole life policy are called
nonforfeiture values
Traditional IRA contributions are tax deductible based on which of the following?
owner's income
Key person insurance can provide protection for all of the following economic losses to a business except
pay the death benefit to the estate of the insured
The frequency and the amount of the premium payment are known as what?
premium mode
An insured will be allowed to reactivate her lapsed insurance policy if action is taken within a certain period of time ad proof of insurability is provided. Which provision allows this?
reinstatement Provision
All of the following are true regarding the waiver of cost of insurance rider except
the rider expires when the insured reaches age 60
Are insurance company underwriters allowed to discriminate?
yes, but not unfairly