Life Policy Provisions , Riders, and Options

Which of the following is true about the mandatory free look period in a life insurance policy?

it commences when the policy is delivered

The insured pays $1,200 annually for her life insurance premium. The year, she has accumulated $175 worth of dividends, which she applies to her next premium, thus reducing it to $1,025. What dividend option has the insured chosen?

reduction of premium

A spouse receives $5,000 a month until the principal and interest on her husband's life insurance policy have been paid out. Which settlement option did this beneficiary choose?

fixed amount

Which of the following features allows an insurance policy to remain in force for a specific number of days beyond e premium due date?

grace period provision

When a death claim is submitted, it is discovered that the insured understand her age on the application for a life policy. What action will the insurer take?

pay a reduced death benefit based on the insureds actual age

If a life insurance policy has an irrevocable beneficiary designation ..

the beneficiary can only be changed with written permission of the beneficiary

Because of an injury, an insured has been unable to work for 7 months. He wasn't able to pay his life insurance policy premiums, yet the policy remained in force. The policy includes ..

waiver of premium rider

Which provision of a life insurance policy states that the application is part of the contract?

entire contract

Under what circumstances will the contingent beneficiary receive the death benefit ?

if the primary beneficiary dies before the insured

A life insurance policy clause that prevents an insurance company from denying payment of death claim after specified period of time is known as the..

incontestability clause

Which if the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy form one individual to another?

assignment

All of following are nonforfeiture options in life insurance policies EXCEPT..

automatic premium loans

Which of the following is NOT a standard exclusion in life insurance policies?

disability

Which of the following statements is true of both the fixed-period and fixed amount settlement options ?

both guarantee that the principal interest will be fully paid out

All of the following are true regarding the guranteed insurability rider EXCEPT..

it is available automatically, for no extra premium