Chapter 4

A father owns a life insurance policy on his 15 year old daughter. The policy contains the optional payor benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21

Which of the following is TRUE about nonforfeiture values

They are required by state law to be included in the policy

The Ownership provision entitles the policyowner to do all of the following except

set premium rates

Which of the following riders would NOT cause the Death Benefit to increase

Payor Benefit Rider

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 from that of the former policy