Chapter: Individual Life Insurance Contract - Provisions and Options
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
Which of the following applies to the 1-day-free-look privilege
It permits the insured to return the policy for a full refund of premiums paid
Which of the following settlement options in life insurance is known as straight life?
Life income
Using a class designation for beneficiaries means
Naming beneficiaries as a group
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
In case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to
The contingent beneficiary
Which of the following statements is TRUE concerning irrevocable beneficiaries?
They can be changed only with the written consent of that beneficiary
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy
What type of account will most likely be established for a minor?
Trust
How long will the beneficiary receive payments under the single life settlement option?
Until the beneficiary's death