chapter 3

when a death claim is submitted, the insured discovered that the insured understated her age on the application for a life policy. What action will the insurer take?

pay a reduced death benefit based on the insured actual age

if the premium on a child's policy or waived after the death of the policyowner, then this policy must have which of the following features?

payor provision

which feature in a life insurance policy allows a policy owner to stop paying premiums and take a paid-up policy with a face amount less than that of the original policy?

nonforfeiture options

what is not a standard exclusion in the life insurance policies?

disability

under the waiver of premium, if the company agrees that the insurer is totally disabled, how long is the waiting period?

six months

an annuitant had been receiving payments under a 10-year period certain annuity option, but died in the six-year period what would happen to the balance of the annuity proceeds?

the payments would continue for four more years

a joint in full Survivor settlement option on an annuity will pay until

the second insured dies

the rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

waiver of premium

which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another?

assignment

which of the following statements is true of both the fixed period and fixed amount settlement options?

both guarantee that the principal and interest will be fully paid out

the inconsentability does not apply to

misstatement of age

which of the following features allows an insurance policy to remain in force for a specific number of days beyond the premium due date?

grace period provision

a 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

"subject to the provisions on the following pages of this contract, the insurance company will pay the death benefit to the named beneficiary. The death benefit will be paid immediately on receipt of due proof of death of the insured and surrender of this policy." this statement is quoted from?

insuring clause

which of the following is true about the free-look period in a life insurance policy?

it starts on the policy is delivered

which provision of a life insurance policy states that the application is part of the contract?

entire contract

what is not considered a dividend option

extended term

what is not guaranteed in the insurability rider

that it will be available automatically and for no extra premium

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

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

a spouse receives $5,000 a month until the principal and interest on her husband's life insurance policy have been paid out. Which settlement option did this beneficiary choose?

fixed amount

under what circumstances will the contingent beneficiary receive the death benefit?

if the primary beneficiary dies before the insured

which of the following allows an insurance company to deny coverage if the insurance death occurs in a war?

policy exclusions

in order for a policy assignment to be valid which of the following must approve it?

policy owner

the insured usually pays $1,200 annually for her life insurance premium. This year, she has accumulated $175 in dividends, and applied that to her next premium, reducing it to $1025. What dividend option has the insured chosen?

reduction of Premium