NYS LAH- Life insurance policy provisions, options, riders- OTHER #1

which of the following is true about a class designation

beneficiaries are not identified by name

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

Which of the following statements about the reinstatement provision is true

requires policyowner to pay all overdue premiums with interest before the policy is reinstated

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor

If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by the insurer?

Lump sum

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase

What type of insurance would be used for a Return of Premium rider?

Increasing term

The policyowner 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 policyowner choose?

Interest only option

when calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value

Outstanding loans and interest

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

The same face amount as in the whole policy

The Waiver of Cost of Insurance rider is found in what type of insurance?

Universal life

Which of the following may contribute to proof of death for the purposes of insurance benefits payment

A death certificate

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid up additions

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid up

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term

Which is true about the cash surrender nonforfeiture option

funds exceeding the premium paid are taxable as ordinary income

An applicant for insurance misstates her age at the time her application is taken, misstatement may result in

Adjustment in death benefit

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

Cash option

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed period

When a life insurance policy was issued, the policyowner designated a primary and contingent beneficiary. several years later both the insured and primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit.

The insured's contingent beneficiary

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

beneficiary will only receive payments of the interest earned on the death benefit

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

original age is used for premium determination

an insured purchased a life policy in 2010 and died in 2020. the insurance company discovers at that time that the insured misstated info on application, what will insurer do

pay death benefit

A policy owner 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 premium loan

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

If the father is disabled for more than 6 months

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

Which of the following, when attached to a permanent life insurance policy allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members

Term rider

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

The paid up addition option uses the dividend to

To purchase a smaller amount of the same type of insurance as the original policy.

What kind of policy allows withdrawals or partial surrenders?

Universal life

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

balance will be taken out of the death benefit

which of the following named beneficiaries would not be able to receive the death benefit directly from the insurer in the event of the insured's death

A minor son of the insured

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary

another name for the accelerated death benefit rider if it is part of the policy is

living benefit