Primerica (Provisions and Options)

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 premium loan

Which of the following best describes fixed-period settlement option?

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

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common Disaster clause

All of the following statements concerning dividends are true EXCEPT

Dividend amounts are guaranteed in the policy.

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

Which of the following policy components contains the company's promise to pay?

Insuring clause

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

Which two terms are associated directly with the premium?

Level or flexible

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Spendthrift clause.

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The balance of the loan will be taken out of the death benefit.

The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

The policyowner can specify the way proceeds are split in the policy.