Chapter 6: Life Policy Riders

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

Guaranteed lifetime withdrawal benefit

Protects annuity owners from losing their investments if the annuity value drops

cost of living rider

adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

cost of living rider

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

guaranteed insurability option

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

guaranteed insurability rider

which of the following annuity riders ensures investors will receive a set amount of income annually?

guaranteed minimum income benefit

which of the following rides added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in an nursing or convalescent home?

long-term care

all of the following are the responsibilities of every long-term care insurer in California EXCEPT

provide enough business to solicit long-term care insurance

all of the following may be included in the continuing education requirement for long-term care insurance EXCEPT

sales techniques and overcoming client objectives in the purchase of long-term care insurance

the wavier of cost insurance rider is found in what type of policy?

universal life

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

an insured purchased a 15-year level term life insurance policy with a face amount of $100,000. the policy contained an accidental death rider, offering a double indemnity benefit. the insured was severely injured in an auto accident and after 10 weeks of hospitalization, died from the injuries . What amount would his beneficiary receive as a settlement?

$200,000 because death occurred within 90 days of accident

a provision in a life insurance policy that provides for early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called

accelerated benefit provision

guaranteed minimum income benefit

allows investors to receive at least a set amount of income annually, regardless of how the underlying investments are performing

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

guaranteed insurablility

long-term care insurers must

maintain strict requirements which include establishing marketing procedures to assure that comparison is fair and accurate, assure that excessive insurance is not sold, and semiannually submit to the Commissioner a list of all agents authorized to solicit for the sale of long-term care insurance

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

monthly premium waiver and monthly income

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 dats of the accident the insured can't contribute to their own death and get the triple indemnity, the beneficiary will only receive the policy's death benefit