Life exam quiz 4

what is the waiting period on a waiver of premium rider in life insurance policies?

6 months

which of the following named benefices would NOT be able to receive the death benefit directly from the insure in the event of the insureds death?

A minor son of the insured

A rider attached to a life insurance policy that provides coverage on the insureds family members is called the

Other insured rider

A father owns a life insurance policy on his 15 yr old daughter . the policy contains the optional Payor benefit rider if the father becomes disabled what will happen to the life insurance premiums?

The insureds premiums will be waived until she is 21 (payor is the person who holds the life insurance policy)

What is true about a spouse term rider?

The rider is usually level term insurance

Whats not true about insurability rider

This rider is available to all insureds with no additional premium

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 contains an accidental death rider offering a double indemnity. The insured was severely injured in an auto accident after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as settlement

100,000 plus the total of paid premiums

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

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

An insured receivers an annual life insurance dividend check. What term best describes this arrangement

Cash option allows an insurer to send the policyholder an annual, nontaxable dividend check.

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option- allows an insurer to send the policyholder an annual nontaxable dividend check

what is not typically excluded from life policies?

Death due to plane crash for a fare paying passenger

The provision which states that both the policy and a copy of the application form the contract between the policy owner and the insurer is called the

Entire contract

Which is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

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 insurability

If a life policy allows the policy owner 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 is true of a children's rider added to an insureds permanent life insurance police?

It is term coverage that is convertible to peremnanet insurance or at a prior to the child reaching maximum coverage age

An insured who had a life insurance policy for 1 million died. In filing the claim his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?

It will go to the insureds estate

if a settlement option is not chosen by the beneficiary or policy owner which option will be used?

Lump sum

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

Payor benefit

All of the following are beneficiary designations EXCEPT

Specified

what is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

Free Look

allows policy owner specified amount of days from receipt to look over the policy and if not happy for any reason return it for a full refund of premium

What happens when a policy is surrendered for its cash value?

coverage ends and the policy cannot be reinstated

What limits the amount that a policy owner may borrow from a whole life insurance policy

it allows the insured to reject the policy with a full refund

The insured had his wife named as the beneficiary of his life insurance policy to ensure his wife had income after the insureds death he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following except

the insureds age at death

The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

the policy owner can specify the way proceeds are split in the policy

Under an extended term nonforfeiture option, the policy cash value is converted to

the same face amount as in the whole life policy