Chapter 6: Life Policy Riders
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the 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
Guaranteed lifetime withdrawal benefit
Protects annuity owners from losing their investments if the annuity value drops
cost of living rider
adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called
cost of living rider
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 policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
guaranteed insurability rider
which of the following annuity riders ensures investors will receive a set amount of income annually?
guaranteed minimum income benefit
which of the following rides added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in an nursing or convalescent home?
long-term care
all of the following are the responsibilities of every long-term care insurer in California EXCEPT
provide enough business to solicit long-term care insurance
all of the following may be included in the continuing education requirement for long-term care insurance EXCEPT
sales techniques and overcoming client objectives in the purchase of long-term care insurance
the wavier of cost insurance rider is found in what type of policy?
universal life
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
an insured purchased a 15-year level term life insurance policy with a face amount of $100,000. the policy contained an 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 his beneficiary receive as a settlement?
$200,000 because death occurred within 90 days of accident
a provision in a life insurance policy that provides for early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called
accelerated benefit provision
guaranteed minimum income benefit
allows investors to receive at least a set amount of income annually, regardless of how the underlying investments are performing
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 insurablility
long-term care insurers must
maintain strict requirements which include establishing marketing procedures to assure that comparison is fair and accurate, assure that excessive insurance is not sold, and semiannually submit to the Commissioner a list of all agents authorized to solicit for the sale of long-term care insurance
After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?
monthly premium waiver and monthly income
triple indemnity accidental death rider
obligates the company to pay three times the face amount of the policy if the insured dies as a result of an accident the death must be accidental and not contributed to by any other factors and must occur within 90 dats of the accident the insured can't contribute to their own death and get the triple indemnity, the beneficiary will only receive the policy's death benefit