Checkpoint exam missed q's

Which of the following settlement options pays a stated amount of interest on the money at regular intervals?

Interest income (only) option Under this option, insurer retains benefits and pays stated amount of interest on the money at regular intervals.

James and his spouse, Paula, have a policy that continues paying a benefit for as long as either beneficiary lives. Which of the following settlement options do James and Paula have?

Joint and survivor life settlement option. This option continues paying benefit as long as beneficiaries live.

According to free look provision, how many days does a policyowner have to return?

10 days.

Which of the following is NOT a common exclusion in life insurance:

Natural disasters.

Sarah purchases a universal life policy with an increasing death benefit equal to the face value of the policy plus the cash account. Which of the following death benefit options did Sarah choose?

Option B. Option A (or 1) provides for a level death benefit equal to policy's face value. Option B (or 2) provides for an increasing death benefit equal to policy face value plus cash account.

With the waiver of premium rider, the insured must be unable to work for a certain period. This is called:

The waiting period. -The insured must be unable to work for a certain period (waiting period) before the waiver takes effect. the waiting period is usually 90-180 days. if the insured is still disabled at the end of the waiting period, the company retroactively refunds any premiums paid during the waiting period.

all of the following statements about withdrawals are true EXCEPT:

withdrawals can be repaid. A withdrawal cannot be repaid. LOANS can be repaid.

Suzanne and Bill were unable to pay premium in January. How long do they have before coverage will lapse?

31 days.

Leah owned a life insurance policy, and she decided that she wanted to transfer that policy to her son when he turned age 18. Which of the following assignments did Leah choose?

Absolute assignment.

All of the following are disability riders EXCEPT:

Accelerated benefit rider -Disability riders include: waiver of premium, waiver of cost of insurance (UL version), disability income rider, and payor rider. With accelerated benefit rider, the insured must have a limited life expectancy or meet certain medical circumstances to be eligible.

With the life period certain settlement option, if the beneficiary dies before the end of the selected payout period, payments

Continue to another person for the rest of the payout period.

All of the following statements about interest-sensitive whole life are correct EXCEPT:

Interest-sensitive policy has an adjustable death benefit. This policy has a fixed-level benefit.

Which of the following specialized policies pays the death benefit when the last insured dies?

Survivorship life policy

What type of policy allows for partial surrenders of the cash value?

Universal Life.

Tina and William have a policy with a death benefit that is distributed equally among all surviving members of their immediate family. Which of the following beneficiary designations did they choose?

Per capita. Per capita is by the head. Per Stirpes is by the branch.

All of the following statements about reinstatement are correct EXCEPT:

The premium will be larger than originally. premium will be the same.

All of the following are riders that affect the amount of a death benefit EXCEPT:

the disability income rider. -disability income rider provides monthly benefit check without effecting death benefit. -Cost of living rider, accidental death rider, and return of premium rider DO effect the death benefit.

Which of the following is NOT one of the 3 factors used to determine the minimum length of the payment period with the fixed amount settlement option?

The age of the insured. 3 factors are used: amount of death benefit, guaranteed interest rate, chosen payment amount.

Which of the following insurance policies allow for partial surrenders from the cash value?

Universal Life. Both whole life and universal allow policy loans from cash value. Only universal life allow withdrawals that do NOT have to be paid back.