Life (policy riders, provisions, options, and exclusions

What wold be an advantage to naming a contingent (or secondary) beneficiary in al life insurance policy?

it determines who receives policy benefits if the primary beneficiary deceased

Regarding the free-look provision, the insurance company?

must allow the policy owner to return the policy for a full refund

According to the Entire Contract provision, a policy must contain?

A copy of the original application for insurance

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration

The sole beneficiary of a life insurance policy die before the insured. If the policy owner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to? a) beneficiary's estate b) the insured's estate c) probate d) the state

b) the insured's estate

Which of the following statements is TRUE about a policy assignment? a) It permits the beneficiary to designate the person to receive the benefits. b) It authorizes an agent to modify the policy. c) It transfers rights of ownership from the owner to another person. d) It is the same as a beneficiary designation

It transfers rights of ownership form the owner to another person

Which of the following is true about the mandatory free look in a life insurance policy? a) It commences when the application is signed b) it applies only to term life insurance policies c) It is optional on all life insurance policies d) It commences when the policy is delivered.

d) it commences when the policy is delivered

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

If the primary beneficiary predeceases the insured

If the policy owner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

Policyowner

The ownership provision entitles the policy owner to do all of the following EXCEPT? a) designate a beneficiary b) set premium rates c) receive a policy loan d) assign the policy

b) set premium rates

Which of the following information will be stated in the consideration clause of a life insurance policy? a) the amount of premium payment b) the parties to the contract c) the time period allowed for the payment of premium d) the condition of insurability

the amount of premium payment

Which provision of a life insurance policy states the insurer's duty to pay benefits upon death of the insured, and to whom the benefits will be paid?

insuring clause

Which is NOT true about beneficiary designations? a) the beneficiary may be a natural person b) the policy does not have to have a beneficiary named in order to be valid. c) trust can be valid beneficiaries d) the beneficiary must have insurable interest in the insured.

the beneficiary must have insurable interest in the insured

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

Entire contract

Which of the following policy components contains the company's promise to pay? a) owner's rights b) Entire contract provision c) insuring clause d) premium mode

insuring clause

Which of the following explains the policy owner's right to change beneficiaries, choose options, and receive proceeds of a policy a) owner's rights b) The entire contract provision c) the consideration clause d) assignment rights

a) owner's rights