life insurance policy provisions, options and riders
according to the entire contratc provision a policy must contain
a copy of the application
whihc of the following will named beneficiary would not get the death benefit from the insurer
a minor
the two types of assignment are
absolute and collateral
cost of living rider
adjust the face amount of the policy to maintain the relationship of the face amount and increase the cost of living
which of the following best describes fixed period settlement option
both the principle and the interest will be liquidated over a select periods of time
an insured receives an annual life insurance dividend check. what best describes this arrangement
cash option
an insured receives an annual life insurance dividend chek what term best describes this arrangement
cash option
under which nonforfeiture option does the company pay the surrender value and have no future obligations to the policyowner
cash surrendered
what limits the amount that a policy may borrow from a whole life insurance
cash value
what limits the amount that a policy owner may borrow from a whole life insurance policy
cash value
a long stretch of national economic hardship cause interest rate influcs which policy has been raised 7 as a result
cost of living
what required provision protects against unintentional lapse of the policy
grace period
spendthrift clause
in a life insurance policy prevents the beneficiarys critors from taking the money
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
whihc of the following is true about a children;s rider added to an insured's permanent life insurance policy
it is term coverage that is convertible to permenenet life insurance at a prior to the childs reaching maxiumum coverage
which of the following is true about the premium on the children's rider in life insurance policy
it remains the same no matter how many children are added
which of he following statement is true about a policy assignment
it transfers rights of ownership from the owner to another person
which of the following statement is true concerning the accidental death rider
it will pay double or triple the face amount
what is another term for cash payment settlement option
lump sum
what is the other term for the cahs payment settlement option
lump sum
after back injury an insured is disabled for a year his insurance policy carries a disability income benefit rider,
monthly premium wavier and monthly income
after back injury an insured is disablked for a year his insurance policy carries a disability income beneficiary rider which of the following benefits will he receive
monthly premium wavier and monthly income
a rider attached tpo a life insurance policy that provides coverage on theinsured family members is called
othere insured rider
which of the following riders would not cause the death benefit to increase
payor benefit rider
if the policyowner, the insured and the beneficiary under life insurance policy are three different people who has ownership rights?
policyowner
the policyowner pays her life insurance annually and she has collected a nontaxable dividend check each year she uses it to pay for her next premium
reduction of pfemium
the ownership provision entitles the policyowner to do all of the following except
set premium rates
wwhich if the following option provides a beneficiary with the income for the rest of their lives
single life
the rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
wavier of premium
common disaster law
will assume that the primary beneficiary dies first in a common disaster as long as the beneficiary dies within 30 days following the death of the insured
the validity of coverage under life insurance policy may be constested except for nonpayment of premium after the policy has been in force for atleats how many years
2
an insured bought a 15 year policy with face amount of 100k. later died in 10 weeks of an accident what amount would his beneficiry get
200k
an insured owns 50k whole life, decides to cancel and exercise the extended term option for the cash value what would the term be
50k
what is the premium period on a waiver of premium rider in life insurance
6 months
what is the waiting period of a wavier of premium rider in life insurance polocieis
6 months
which is true about the cash surrender nonforfeiture option
funds exceeding the premium are taxable as ordinary income
which is true about the cash surrender nonforfeiture option
funds exceeding the premium paid are taxable as ordinary income
which is true about cash surrendered nonforfeiture option
funds exceeding the premium paid are taxable ordinary income
which is true about the cash surrender nonforfeiture option
funds exceeding the premium paid are taxable ordinary income
if the payor becomes disabled for at least 6 months and is still disabled
the insurer will wave premium until the minor reaches age 21
the owner of a life insurance policy wishes to name 2 beneficiaries for the policy proceeds
the policyowner can soecify the way the proceeds are split in the policy
the owner of the life insurance policy wishes to name two beneficiaries for the policy proceeds what will the soliciting insurance producer say
the policyowner can specify the way proceeds are split between the policy
which is true about a spouse term rider
the rider is usually level term insurance
the paid up addition option uses the dividend
to purchase a smaller amount of the same type of coverage as the original policy
an absolute assignment is a
transfer of all ownership rights in a policy
the waiver of cost of insurance rider is found in what type of insurance
universal life
the rider in a whole life policy that allows the company to for go collecting the premium if the insured is disabled is called
wavier of premium
the automatic premium loan provision is activated at the end of the
grace period
what provision in an insurance policy extends coverage beyond the premium due dat
grace period
which of the following explains the policyowner's right to change beneficieries choose options and receive proceeds of a policy
owner's rights
all of the following are beneficiary designations except
specified
who can make changes to the policy once it is in effect
the executive office of the insurer
interest only option
the insurance company retains the policy proceeds and pays interest on the proceeds to the recipant at regular intervals
all of the following are true regarding guaranteed insurability except
the rider is available to all insurds with no additonal premium
all of the following are true regarding the guaranteed insurability rider except
the rider is available to all insureds with no additional premium
which of thefollowing statements is true concerning irrevocable beneficiaries
they can be changed with the written consent of that benficairay
