Insurance: Chapter 3

Death benefit

With the Triple Indemnity Accidental Death rider, if the insured dies and they are at fault, does the beneficiary receive the death benefit OR triple the amount?

Transfer of all ownership rights in a policy

An absolute assignment is a..

Reduction of Premium

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. What option does this describe?

Term

Children's riders attached to whole life policies are usually issued as what type of insurance?

More than 6 months

In Payor Benefit rider, the child's parent or guardian must be disabled for how long in order for the rider to waive the payment of premium?

Coverage ends and the policy cannot be reinstated

What happens when a policy is surrendered for its cash value?

The original age is used for premium determination

What is the advantage of reinstating a policy instead of applying for a new one?

Life Income

What settlement option in life insurance is known as straight life?

taxable

The interest earned on policy dividends is

Absolute and collateral

The two types of assignments are

2 years

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?