Life insurance policy provisions, options and riders
if a life policy allows the policy owner to make periodic additions to the face amount at the standard rates without proving insurability the policy includes a
Guaranteed insurability rider
which of the following statements about the reinstatement provision is true
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
which is true about a spouse term rider
The rider is usually level term insurance
under an extended term nonforfeiture option the policy cash value is converted to
The same face amount as in the whole life policy
what happens when a policy is surrender for its cash value
coverage ends and the policy cannot be reinstated
an individual purchased a life insurance policy on his life naming his wife as primary beneficiary and their daughter as contingent beneficiary. Under what circumstances , the daughter collect the death benefit
if the primary beneficiary predeceases the insured
Life insurance policies that have cash value must provide for a maximum policy loan interest rate of no more than
7 to 8%
Which of the following statements is true concerning irrevocable beneficiaries
They can be changed only with the written consent of that beneficiary.
and insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
paid up additions
which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium
Automatic premium loan
and insured pays $1200 annually for her life insurance premium the insured applies this year is $300 worth of accumulated dividends to the next year's premium that's reducing it to $900. what option does this describe?
reduction of premium
which of the following riders would not cause the death benefit to increase
payor benefit rider
which of the following is true about the 10 day free look period in a life insurance policy
it begins when the policy is delivered
which of the following is true of a children's writer added to an insurance permanent life insurance policy
it is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age
which of the following is true regarding a single life settlement option
it provides income the beneficiary cannot outlive