EXAM FX Life Policy Provisions, Riders and Options

Both the principal and interest will be liquidated over a selected period of time.

Which of the following best describes fixed-period settlement option?

Joint and survivor

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

The amount of premium payment

Which of the following information will be stated in the consideration clause of a life insurance policy?

Payor Benefit Rider

Which of the following riders would NOT cause the Death Benefit to increase?

Family term rider

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

Revocable beneficiary

A policy owner 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

The insured's premium will be waived until she is 21.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premium?

Adjustment in the amount of death benefit

An insured misstates her age at the time the life insurance application is taken. This misstatement may result in

$200,000

An insured purchased a 15-year level term life insurance policy a

Copy of the original application

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

The death benefit will be smaller.

If an insured withdraws a portion of the face amount in the form of accelerated benefits of a terminal illness, how will that affect the payable death benefit from the policy?

Incontestability clause

The 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

The beneficiary will only receive payments of the interest earned on the death benefit.

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

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

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

Payor Benefit Rider

Does not increase the Death Benefit; it only pays the premium if the payor is disabled or dies.

To purchase a smaller amount of the same type of insurance as the original policy.

The paid-up addition option uses the dividend