Life Insurance CHPT III
All of the following are non forfeiture options EXCEPT? A. automatic premium loans B. cash surrender value C. extended term D.reduced paid up insurance
A. automatic premium loans
All of the following are true regarding the guaranteed insurability rider EXCEPT? A. allows insured to purchase additional coverage without proof of insurance B. available automatic with no extra premium C. insured may purchase additional coverage at attained age D. usually expires at age 40
B. available automatic with no extra premium
Which of the following statements is true of both fixed-period and fixed amount settlement options? A. both guarantee payments for life of beneficiary B.both guarantee that principal and interest will be paid off C. amount of payments is based on recipient life expectancy D. size of installments decreases after a certain period of time
B. both guarantee principal and interest will be paid off
A spouse receives 5000 a month until principal and interest have been paid out on husbands premium. What settlement option did he choose? A. life income B.fixed amount C.cash payment D.fixed perios
B. fixed amount
life insurance clause that prevents insurance com. from denying payment of a death claim after a specified time is. A. misstatement of age clause B. incontestability clause C. reinstatement clause D. legal action
B. incontestability clause
If a life insurance policy has an irrevocable beneficiary designation, A. beneficiary can never be changed B. beneficiary can only be changed with written permission of beneficiary C. beneficiary cannot be changed for 2 years D. owner can always change beneficiary at will
B.beneficiary can only be changed with written permission of beneficiary
Which provision of life insurance states that app is part of the contract? A. insuring clause B. ownership C. entire contract D.assignment
C. entire contract
Which of the following features allows insurance policy to remain in force for a specific number of days beyond premium due date? A.reinstatement provision B. non forfeiture option C. grace period provision D.consideration clause
C. grace period provision
Under what circumstances will the contingent beneficiary receive the death benefit? A. if designated by primary beneficiary B. if contingent is in the insured estate C. if the primary beneficiary dies before the insured D. if designated by the insured
C. if the primary beneficiary dies before the insured
When a death claim is submitted, the insurer discovered that the insured understated her age on the app. What action will the insurer take? A. deny claim based on material misrepresentation on the app B.pay face amount on policy if death occurred after incontestable period C.pay a reduced death benefit based on insurer actual age D. pay full death benefit and sue insure's estate for damages
C. pay a reduced death benefit based on insurer actual age
Insured usually pays 1200 annually for life insurance premium. This year she paid !025 minus 175 for dividend. What dividend option did the insurer choose? A. cash option B. reduced paid up C. reduction of premium D. accumulation of interest
C. reduction of premium
Because of an injury, an insured has been unable to work for 7 months. He wasant able to pay for his life insurance, yet policy still remained in force, the policy includes A. accelerated benefits rider B. non forfeiture option C. waiver of premium rider D. guaranteed insurability benefits
C. waiver of premium rider
Which of the following terms refers to transfer of some or all ownership rights of a life insurance from one person to another? A. non forfeiture B. endorsement C. transfer of value D. assighnment
D. assignment
Which of the following is not an exclusion in policy? A. aviation B. military service C. hazardous occupation D. disability
D. disability
Which is true about mandatory free-look period in a life insurance policy? A. starts when app is signed B. applies only to term insurance C.can be waived by insurer D. starts when policy is delivered
D. starts when policy is delivered
