missed questions CHAPTER 3 LIFE

for how long is an insurance company allowed to defer policy loan requests

6 months

the paid-up addition options uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

according to the entire contract provision, a policy must contain

a copy of the original application for insurance

which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the even of the insured death

a minor son

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

automatic premiun loan

which of the following componenets must a life insurance policy have to allow policy loans

cash value

a long stretch of national economic hardship causes a 7% rate of inflation. a policy owner notices that the face value of her life insurance policy has been raised 7% as a result. which policy rider caused this change

cost of living rider

what happens when a policy is surrendered for its cash value

coverage ends and the policy cannot be reinstated

which is true about the cash surrender nonforfeiture option

funds exceeding the premium paid are taxable as ordinary income

an individual is purchasing a permanent life insurance policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy

guaranteed insurability option

if a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

guaranteed insurability rider

Life income joint and survivor settlement option guarantees

income for 2 or more recipients until they die

the life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

incontestability clause

What type of insurance would be used for a Return of Premium rider?

increasing term

all of the following are nonforfeiture options except

interest only

the policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. which settlement option should the policy owner choose

interest only option

what is the benefit of choosing extended term as a nonforfeiture option

is has the highest amount of insurance protection

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

it is reduced to the amount of what the cash value would buy as a single premium

Which of the following statements is true concerning the accidental death rider

it will pay double or triple the face amount

which two terms are associated directly with the premium

level or flexible

which of the following settlement options in life insurance is known as straight life

life income

which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home

long-term care

if a settlement option is not chosen by the policy owner or the benficiary, which option will be used

lump sum

regarding the free-look provision, the insurance company

must allow the policy owner to return the policy for a full refund

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

purchase a single premium policy for a reduced face amount

a policy owner who is also the insured wants to name her husband as the benficiary of her life policy. she also wished to retain all of the rights of ownership. the policy owner should have her husband named as the

revocable beneficiary

Which of the following statements about a suicide clause in a life insurance policy is true

suicide is excluded for a specific period of years and covered therafter

childrens riders attached to whole life policies are usually issued as what type of insurance

term

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive