Chapter 3 quiz: missed questions

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000 The triple indemnity accidental death rider obligates the company to pay three times the face amount of the policy if the insured dies as a result of an accident. The death must be accidental and not contributed to by any other factors and must occur within 90 days of the accident. In this case, since the insured contributed to his own death, the triple indemnity rider is void, but the beneficiary will still receive the policy's death benefit.

Simple plans require all of the following except

At least 1,000 employees.

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

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

Copy of the original application

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 two terms are associated directly with the premium

Level or flexible

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduced death benefit

The policyowner pays for her life insurance annually. Until now, she has collected a non taxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do thisv

Reduction of premium

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 thereafter.

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will not be lost

Which of the following is TRUE about nonforfeiture values?

They are required by state law to be included in the policy.

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 period