missed questions CHAPTER 3 LIFE
for how long is an insurance company allowed to defer policy loan requests
6 months
the paid-up addition options uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
according to the entire contract provision, a policy must contain
a copy of the original application for insurance
which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the even of the insured death
a minor son
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
automatic premiun loan
which of the following componenets must a life insurance policy have to allow policy loans
cash value
a long stretch of national economic hardship causes a 7% rate of inflation. a policy owner notices that the face value of her life insurance policy has been raised 7% as a result. which policy rider caused this change
cost of living rider
what happens when a policy is surrendered for its cash value
coverage ends and the policy cannot be reinstated
which is true about the cash surrender nonforfeiture option
funds exceeding the premium paid are taxable as ordinary income
an individual is purchasing a permanent life insurance policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy
guaranteed insurability option
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
Life income joint and survivor settlement option guarantees
income for 2 or more recipients until they die
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
incontestability clause
What type of insurance would be used for a Return of Premium rider?
increasing term
all of the following are nonforfeiture options except
interest only
the policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. which settlement option should the policy owner choose
interest only option
what is the benefit of choosing extended term as a nonforfeiture option
is has the highest amount of insurance protection
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
it is reduced to the amount of what the cash value would buy as a single premium
Which of the following statements is true concerning the accidental death rider
it will pay double or triple the face amount
which two terms are associated directly with the premium
level or flexible
which of the following settlement options in life insurance is known as straight life
life income
which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home
long-term care
if a settlement option is not chosen by the policy owner or the benficiary, which option will be used
lump sum
regarding the free-look provision, the insurance company
must allow the policy owner to return the policy for a full refund
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
purchase a single premium policy for a reduced face amount
a policy owner who is also the insured wants to name her husband as the benficiary of her life policy. she also wished to retain all of the rights of ownership. the policy owner should have her husband named as the
revocable beneficiary
Which of the following statements about a suicide clause in a life insurance policy is true
suicide is excluded for a specific period of years and covered therafter
childrens riders attached to whole life policies are usually issued as what type of insurance
term
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive