Exam Fx 4-26-19 Life Policy Provisions, Riders and Options

Set premium rates

The Ownership provision entitles the policyowner to do all of the following EXCEPT A. Receive a policy loan. B. Assign the policy. C. Designate a beneficiary. D. Set premium rates.

Revocable beneficiary

The policyowner may change a revocable designation at any time and without the consent of the beneficiary. Irrevocable beneficaries, on the other hand, have a vested interest in the policy, so the policyowner may not be able to exercise certain rights without their consent.

Grace Period

What provision in an insurance policy extends coverage beyond the premium due date?

Fixed amount

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Payor Benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

The interest is not taxable since it remains inside the insurance policy.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT A. The interest is credited at a rate specified by the policy. B. The policyholder has the right to withdraw the accumulations at any time. C. The interest is not taxable since it remains inside the insurance policy. D. The annual dividend is retained by the company

An insured is diagnosed with cancer and needs help paying for her medical treatment.

Under which of the following circumstances would an insurer pay accelerated benefits?

If the father is disabled for more than 6 months

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

Family Term rider

which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

This rider is available to all insureds with no additional premium.

All of the following are true regarding the guaranteed insurability rider EXCEPT A. The insured may purchase additional coverage at the attained age. B. The insured may purchase additional insurance up to the amount specified in the base policy. C. It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events. D. This rider is available to all insureds with no additional premium.

If the primary beneficiary predeceases the insured.

An insured purchased a life insurance policy on his life naming his wife a primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

It requires the policyowner to pay all overdue premuims with interest before the policy is reinstated.

Which of the following statements about the reinstatement provision is true?

Guaranteed insurability

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

Revocable beneficiary

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

Accelerated benefits

are paid when insureds endure financial hardship due to severe illness. They may request immediate payment of some portion of the policy's death benefit, usually 50-100%, depending on the insurer. Benefits are not taxable.

Absolute and collateral

The two types of assignments are

It remains the same no matter how many children are added to the policy.

Which of the following is true about the premium on the children's rider in a life insurance policy?