Life insurance policy provisions, options & riders

No, only when the owner is the beneficiary

Is the beneficiary required to have insurable interest in the insured.

Double indemnity

The insurer will pay a benefit of twice the face amount

Pay reduced death benefit

The insured is 10 yrs older than he stated on the app. What will the insurer do regarding death benefit?

Cash surrender, reduced paid up, extended

3 non forfeiture options in life insurance policies

Cash surrender, reduced paid-up, extended term

3 nonforfeiture options in life insurance policies?

When it may alter the underwriting decision

When would a misrepresentation be considered material?

The death benefit will be adjusted to the amount that the insured could obtain for her correct age.

An applicant for life insurance misstates her age on the policy app. How will this affect the death benefit?

Yes, the suicide was committed after the restricting period

An insured purchased a life policy, & then committed suicide 5 years later. Will the company pay the benefit?

Settlement option

Describes methods of payment of the death benefit to the beneficiary upon the insured's death

Grace period

Provision in life insurance policy that extends coverage beyond the premium due date

To allow the insured to return the policy with a full refund

Purpose of a free-look period?

Return of unused premiums

What are policy dividends?

Paid-up additions

What dividend option can increase the death benefit of an existing life policy

Paid-up additions

What dividend option is automatically selected by the company if not chosen by the policy owner?

Prevent lapse of a policy because of nonpayment of the premium

What is the purpose of the Automatic Premium loan provision?

...

What is the reduction of premium dividend option, how is the dividend used?

Waiver of premium

What life policy rider allows the company to forgo collecting the premium if the insured becomes disabled?

Grace period

What required provision protects against unintentional policy lapse?

Lump-sum/cash, fixed period, fixed amount, life income, interest only

What settlement options are available in life insurance policies?

Settlement options

What term is used to describe methods of payment of the death benefit to the beneficiary upon the insured's death

Collateral assignment

What type of assignment is used to secure the payment of debt with an existing life insurance policy?

When the primary beneficiary dies before the insured

When will a contingent beneficiary receive death benefit from life insurance policy?

...

Which 2 types of policy assignments requires transfer of all ownership rights in the policy to a third party?

Absolute assignment

Which of the 2 types of policy assignments requires transfer of all ownership rights in the policy to a third party

Policy owner

Who controls changes in premium payments, face values, & loans in a life insurance policy?

A copy of the original insurance app

To meet the requirement of the entire contract policy provision, an insurance policy must contain what?

A promise to pay policy benefits

What is consideration on the part of the insurer

When a suicide is committed within a specified period of time after the policy is purchased (usually 2 years)

When can an insurance company use suicide as a defense against paying a death claim?

Revocable

Type of beneficiary that can be changed at any point by the policy owner

Statements made by the app that are true to the best of applicant's knowledge

What are representations on life insurance app

Cash, reduced premium, accumulation at interest, paid-up additions, paid-up options, 1 yr term, & acceleration of endowment

What are the dividend options in life insurance policies?

Primary beneficiary

What beneficiary designation had first claim to the death proceeds of a life insurance policy?

Policy premium in a reinstated policy will be set according to the insured's original age.

What is the advantage of reinstating a life insurance policy as opposed to applying for a new one?

Policy proceeds are retained by the insurance company; only the interest is paid to the beneficiary

With the interest only settlement option, what happens to the policy's death benefit

The contingent beneficiary

Who does the common disaster clause protect

Contingent beneficiary

Who does the common disaster clause protect?

Policyowner

Who has the right to the cash value of a life insurance policy?

Policy proceeds are retained by the insurance company; only the instead is paid to the beneficiary

With the interest only settlement option, what happens to the policy's death benefit?