Life insurance excludions

14: If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy? A The death benefit will be forfeited. B The death benefit will be the same as the original face amount. C The death benefit will be larger. D The death benefit will be smaller

D

1: An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do? A Refuse to pay the death benefit because of the misstatement on the application B Pay a decreased death benefit C Sue for the right to not pay the death benefit D Pay the death benefit

D

12: Which of the following best describes fixed-period settlement option? A Both the principal and interest will be liquidated over a selected period of time. B Only the principal amount will be paid out within a specified period of time. C The death benefit must be paid out in a lump sum within a certain time period. D Income is guaranteed for the life of the beneficiary

A

3: Which of the following riders would NOT cause the Death Benefit to increase? A Cost of Living Rider B Accidental Death Rider C Payor Benefit Rider D Guaranteed Insurability Rider

C

15: Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean? A The primary beneficiary will receive the death benefit and the secondary beneficiaries will share the interest payments. B The beneficiary will only receive payments of the interest earned on the death benefit. C The beneficiary must pay interest to the insurer. D The beneficiary will receive the lump sum, plus interest.

B

3: 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 A Nonforfeiture option. B Guaranteed insurability rider. C Paid-up additions option. D Cost of living provision.

B