POL California Life: Life Policy Riders

As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?

8

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

A long stretch of national economic hardship causes a 7% rate of inflation. A policy-owner notices that the face value of life insurance policy has been raised 7% as a result. Which policy rider caused the charge?

Cost of Living Rider

All of the following topics may be included in the continuing education requirements for long-term care insurance EXCEPT...

Sales techniques and overcoming client objectives in the purchase of long-term care insurance.

Every long term care insurer in California must submit to the Commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of ling-term care insurance. These submitted agent lists must be updated at least...

Semiannually

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained and accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would he death beneficiary receive as a settlement?

$200,000

A rider that mat be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Customer Price Index, is called...

Cost of Living rider

All of the following are features and requirements of the Living Needs Rider EXCEPT...

Diagnosis must indicate that death is expected within 3 years

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

Z falls from the roof of his house while fixing it and damages his spinal column enough to render him disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will Z receive?

Monthly premium waiver and monthly income

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

This rider is available to all insureds with no additional premium.

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

Universal Life

A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from terminal illness or injury is called...

Accelerated Benefit provision

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called...

Guaranteed insurability

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the beneficiary?

It will decrease the benefits paid to the beneficiary

A long stretch on 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 the change?

Cost of Living Rider

M is the owner of a $100,000 life policy with a triple indemnity rider for accidental death. When M is killed in a car accident, it is determined that the accident was his fault. The triple indemnity rider in M's policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000

Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called...

Waiver of premium

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