Quiz 3

Life policy riders provisions, options, and exclusions. According to the entire contract provision, what document must be made part of the insurance policy

Copy of the original application

When the policy owner specified a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

If the policy owner, the insured and the beneficiary under a life insurance policy are three different people, who had the ownership rights?

Policy owner

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

Which of the following is true of a children's rider added to an insureds permanent life insurance policy?

It is a term coverage that is convertible to permanent insurance at/or prior to the child's reaching the maximum coverage age. - children's rider are term insurance covering all of the children in the family, including newly born children, and/or convertible to permanent insurance upon a child reaching the maximum.

In a case where the primary beneficiary pre deceases the insured, in the event of the insureds death, the death benefit proceeds will be paid to...

The contingent beneficiary -received the death benefit if the primary beneficiary pre deceases the insured. If there are no designated beneficiaries surviving the insured, the benefit are paid to the estate of the insured

Which non forfeiture option has the highest amount of insurance protection

Extended term

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 -allow the policy owner to purchase specific amounts of additional insurance at specific dates or events, without proving continued insurability. Rates for the additions are based upon attained age

Which of the following explains the policy owners right to change beneficiaries, choose options, and receive proceeds of a policy ?

Owners rights -policy wonders can learn about their ownership rights by referring to the policy

A policy owner who is also the insured wants to name her husband the beneficiary of her life policy. She also wishes to retain in all of her rights of ownership. The policy owners should have her husband named as the....

Revocable beneficiary - the policy owner may change a revocable designation at any time without the consent of the beneficiary. Irrevocable beneficiaries on the policy, so the policy owner may not be able to exercise certain rights without their consent

The insured has his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insurers death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT

The insureds age at death will not be considered but the longer the life expectancy of the recipient the lower the payments will be

Who can request changes in premium payments, face values, loans, and policy plans?

Policy owner

All of the following are true regarding the guaranteed insurability rider except

This rider is available to all insureds with no additional premium

The automatic premium loan provision is activated at the end of the

Grace policy

An individual is purchasing a permanent life insurance policy with a face value of $25k while this is all insurance that can be afforded at the time, he will be available in the future. Which of the following options should be included in this?

Guaranteed insurability option - the guaranteed insurability option allows the insured to purchase specific amounts of additional insurance at a specific time without providing insurability

If a life insurance policy has an irrevocable beneficiary designation....

The beneficiary can only be changed with written permission of the beneficiary