RIDERS

All of the following are correct statements about level term riders except: [A] The rider must be attached to a permanent policy. [B] The permanent policy it is attached to must have a premium paying period at least equal to or greater than the term rider used in combination with it. [C] The rider is usually written with a maximum company ration of 3:1 or 5:1. [D] A level term rider is always used with term insurance.

A level term rider is always used with term insurance.

Most disability income riders include: [A] A life insurance component [B] An accidental death benefit [C] Credit insurance [D] A waiver of premium

A waiver of premium

When an accidental death rider is attached to a life insurance policy, the payout amount under the rider: [A] Is usually the same as the face amount of the policy [B] May be three times the face amount of the policy [C] May be more than three times the face amount of the policy [D] Any of the above

Any of the above

When can an insurance company refuse to reinstate a waiver of premium rider? [A] When the insured's health declines [B] At reinstatement if the policy lapses [C] At any time [D] Never

At reinstatement if the policy lapses

Which of the following can be used to define "total" disability in order to qualify for the waiver of premium benefit? [A] The insured is prevented by disability from engaging in his or her usual occupation. [B] The insured is prevented from engaging in any work for gain or profit. [C] Both a and b [D] Neither a nor b

Both a and b

Another term for the guaranteed insurability rider is [A] Insurance protection rider [B] Future increase option [C] Either of the above [D] Neither of the above

Either of the above

Sophie has a rider on her life insurance policy which states that she can purchase more permanent insurance on policy anniversary dates when she is 30, 35, and 40. Which type of rider does Sophie have? [A] Guaranteed insurability rider [B] Payor rider [C] Payee rider [D] Permanent insurance rider

Guaranteed insurability rider

Which of the following disabling acts would generally not be excluded from coverage under a waiver of premium rider? [A] Self-inflicted injury [B] Injury received in military service during time of war [C] Injury received while committing a crime [D] Injury sustained while driving sleepy or tired

Injury sustained while driving sleepy or tired

When an additional premium is charged for a waiver of premium rider, does the extra charge increase a life insurance policy's cash value? [A] Yes because additional money is being paid into the policy [B] Yes because the insured is paying for this benefit [C] No because the extra charge simply helps meet the cost of providing the benefit [D] No because this would be unfair to other insureds

No because the extra charge simply helps meet the cost of providing the benefit

Virginia has a life insurance policy on her son Vince and she pays the premiums. A rider to the policy states that if Virginia becomes permanently and totally disabled, the premiums will be waived until Vince reaches 21. At this point, Vince will pay the premiums. What type of rider is in place here? [A] Waiver of premium rider [B] Payor rider [C] Disability income rider [D] Guaranteed insurability rider

Payor rider

Special provisions physically attached to an insurance policy and not found in the original contract are termed: [A] Riders [B] Provisos [C] Stipulations [D] Clauses

Riders

Which of the following is a correct statement about a decreasing term rider? [A] The premium decreases toward the end of the term, but the coverage remains the same. [B] The premium and the face amount steadily decrease over the term. [C] The premium and the face amount decrease toward the end of the term. [D] The benefit amount decreases each year the policy is in force, but the premium remains fixed.

The benefit amount decreases each year the policy is in force, but the premium remains fixed.

Under most accidental death riders, [A] The insured must die instantly in an accident [B] The insured must die within one week of an accident [C] The policy must have been in force two years before the accident [D] The insured must die within 90 days of the accident

The insured must die within 90 days of the accident

Who is responsible for making premium payments during the waiting period under a waiver of premium rider? [A] The insurer [B] The policyowner [C] The insurer and the insurer split the premiums equally. [D] No premium is required until the extent and permanence of the disability is determined.

The policyowner

If a life insurance policy has an accidental death rider, how does this affect any outstanding indebtedness on the policy? [A] Outstanding loans are forgiven. [B] Any past due premiums are forgiven. [C] The rider does not affect outstanding indebtedness. [D] Interest on any indebtedness is forgiven.

The rider does not affect outstanding indebtedness.

Although this varies among insurers, what is the common waiting period before a waiver of premium benefit is paid? [A] Two weeks [B] One month [C] Three to six months [D] One year

Three to six months

Bert is concerned that if he becomes disabled, he will not be able to pay his life insurance premiums. Since he has a family to provide for, what type of rider should Bert consider? [A] Waiver of premium rider [B] Accidental death and dismemberment rider [C] Disability income rider [D] Credit insurance rider

Waiver of premium rider