types of life policies

Regarding the free-look provision, the insurance company

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

a rider attached to a life insurance policy that provides coverage on the insured's family members is called the

other-insured rider

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

revocable beneficiary

The ownership provision entitles the policy owner to do all of the following except

set premium rates

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

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

An insured pays an annual premium to his insurer. In return, the insurer promises to pay the benefits in accordance with the terms of the contract. This is called

Consideration

The provision which states that both the policy and a copy of the application form the contract between policy owner and the insurer is called

Entire contract

When a life insurance policy is canceled and the insured has selected the extended term nonforfeiture option, the cash will be used to purchase term insurance that has a face amount

Equal to the original policy for as long a period of time that the cash value will purchase

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

What is the purpose of a free-look period in insurance policies?

It allows the insured to reject the policy with a full refund.

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

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.

Which of the following statements is true about a policy assignment?

It transfers rights of ownership from the owner to another person

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

Lump sum

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

Owner's rights.

when an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy

Return of premium

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

If policy owner becomes disabled what will happen to the life insurance premiums he has on his daughter?

The insured's premiums will be waived until she is 21

Which is true about a spouse term rider?

The ride is usually level term insurance

According to the entire contract provision, a policy must contain

a copy of the original application for insurance

An individual borrowed money at the bank to send his daughter to college. Instead of purchasing Credit Life Insurance, he used an existing life insurance policy to secure the debt. This would be called a

collateral assignment

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates the life insurance policy had what provision?

common disaster

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

According to the entire contract provision, what document must be made part of the insurance policy?

copy of the original application

Which of the following is not typically excluded from life policies

death due to plane crash for a fare-paying passenger

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

guaranteed insurability option

Which settlement option allows the insurer to retain the face amount but pay some income based on gain on the proceeds to the beneficiary at regular intervals?

interest only

Which of the following is true about the mandatory free look in a life insurance policy

it commences when the policy is delivered

Which of the following statements is true concerning irrevocable beneficiaries?

they can be changed only with the written consent of that beneficiary