cheese

What provision in a life insurance policy states that the application is considered part of the contract? * 1/1

Entire Contract provision

Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?

Evidence of insurability is required when the option is exercised

11. When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

Exclusion

Which life insurance policy provision allows a policy owner to cancel the policy within a limited time period and be given a full refund? * 0/1

Free Look Period

An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?

Full face amount minus any past due premiums

. D is the policy owner and insured for a $50,000 life insurance policy. The beneficiary is D's mother. D marries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

His mother only

A policy owner has just borrowed from a life insurance policy's cash value. Which of these statements is true?

In the event of death, the loan amount is deducted from the policy proceeds

Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed? *

Incontestable clause

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)?

Insuring agreement

In a life insurance contract, an insurance company's promise to pay stated benefits is called the?

Insuring clause

What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?

Irrevocable beneficiary

Which of these are NOT an example of a Nonforfeiture option?

Life income

The accelerated benefits provision/rider allows?

A % of the policy to be paid to the insured tax free before passing away

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)? *

Accidental Death and Dismemberment rider (AD&D)

The Consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due

. Which premium schedule results in the lowest cost to the policy owner?

Annual

. When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? *

At future dates specified in the contract with no evidence of insurability required Feedback

S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?

Automatic Policy Loan

All of the following are Nonforfeiture Options EXCEPT?

Automatic Premium Loan Option

What action will an insurer take if an interest payment on a policy loan is not made on time?

Automatically add the amount of interest due to the loan balance

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

Aviation exclusion

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take?

Beneficiary will be paid the Death Benefit

P died 3 years after purchasing a life policy. While investigating, the insurer discovered fraud made by P during the application process. What will happen? *

Beneficiary will be paid the death benefit

S is covered by a whole life policy. Which insurance product can cover his children? *

Child term rider

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15, what action will the insurer take?

Claim will be denied

Which statement regarding the Misstatement of Age provision is considered to be true?

Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered

9. Florida's 14-day free-look period for life insurance policies begins (starts) at the?

Date of delivery (delivery receipt)

A client buys a Life policy on June 1st, but gets depressed and commits suicide on July 1st. The insurance company will? *

Declined the death claim because it happened during the suicide clause period

A policy owner is allowed to pay premiums more than once year under which provision?

Mode of Premium

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

P will still receive declared dividends

A young, married teacher has two children and owns a Whole Life policy. If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options?

Paid-Up Additional Insurance

. M had an annual life insurance premium payment due September 1. She died September 10 without making the premium payment. What action will the insurer take

Pay face amount minus the past due premium

. If an insured dies with an outstanding policy loan, what will the insurer do?

Pay the death benefit minus the loan amount plus interest

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disabled?

Payor clause

A provision in a life insurance policy that pays the policy owner an amount that does not surpass the guaranteed cash value is called the?

Policy Loan provision

What benefit does the Payor clause on a Juvenile (Child) Life policy provide? *

Premiums are waived if payor becomes disabled

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be paid to K's estate if P dies within a specified time

Which of these Nonforfeiture Options continues a build-up of cash value? *

Reduced Paid-Up

A policy owner would like to change the beneficiary on a life insurance policy and make the change permanent. Which type of designation would fulfill this need?

Revocable

7. What is the Suicide provision designed to do?

Safeguard the insurer from an applicant who is contemplating suicide

What are Non-Forfeiture are exercised at the?

Surrender of the policy

How are policy owner dividends treated in regards to income tax?

Taxed on accumulation of interest

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Term

Which of these life insurance riders allows the applicant to have excess coverage? * 0/1

Term rider

Grace period does NOT include?

Waive premiums due