Life Insurance Test 2
A beneficiary designation that prevents the policy owner from making certain changes in the policy is:
Irrevocable
Which of the following is a Non-forfeiture Option that provides continuing cash value buildup?
Reduced Paid-Up
Which of the following is true about the Misstatement of Age provision?
It allows the insurer to adjust benefits
A $10,000 Life insurance policy with a Triple Indemnity clause has been in force for three years. The insured is injured in a train wreck and dies in a hospital five months later. The death proceeds payable under the policy would be
$10,000
A customer buys a 25000 life insurance policy with a 25000 accidental death benefit rider attached. if he dies of cancer how much will his policy pay?
25000
An insurance company will grant an advance from the cash value of a life insurence policy when the policy owner requests which of the following?
A policy loan
The provision in a Life insurance policy that provides protection against unintentional policy lapse is known as the:
APL
A rider that keeps a policy from lapsing due to non-payment of premium by borrowing from the cash value is
Automatic Premium Loan
A client applied for life insurance on Oct 1st. The application was approved and the policy was issued on Oct 10th. It was delivered to the customer on Oct 18th. When did the free Look start?
Oct 18th
All of the following are considered to be owner's rights under a Life insurance policy, EXCEPT:
Changing an irrevocable beneficiary
To add coverage for a child to your whole life policy you would purchase which of these riders?
Child term rider
A client buys a Life insurance policy on July 1st and dies by suicide 6 months later. The insurance company will
Deny the claim, but refund the premium
Which of these is a rider that would ensure you can purchase additional insurance coverage, at specified ages, regardless of health?
Guaranteed Insurability Rider
which of the following statement is true about exercising a guaranteed insurability option: I The new insurance is available at the original issue age rate II Evidence of insurability is not required III the insured can exercise the otion at any time after the age of 21 IV the maximum purchase is specified in the contract
II and IV
Which of the following statements about the Misstatement of Age provision in a Life insurance policy is true
If the insured's age has been understated, it provides that a death benefit smaller than the face amount of the policy will be payable
The Life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the:
Incontestability clause
The clause that states the insurer's promise to pay the policy benefits in accordance with the contract's provisions is the:
Insuring Clause
Which of the following statements about the reinstatement provision is true?
It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated
Which of the following Settlement Options might provide payments that exceed the proceeds of the policy and the interest earned?
Life Annuity
On Life insurance, the purpose of the Entire Contract Clause is to:
Limit the policy to the contract plus the application, if attached
The purpose of the Grace Period is?
Protect the policy owner against unintentional lapses
A client buys a 50000 Whole Life policy on himself and wants to add 25000 in Term coverage for his spouse. He should add which of the following riders to his policy?
Other insured rider
Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add?
Other insured rider
If the insured understated his age and the error is discovered after the insured's death, the insurance company will:
Pay the amount that the premium paid would have purchased at the correct age
If the insured dies 5 years after he bought a Life Insurance policy and the insurer determines that there was material misrepresentation on his application, they will?
Pay the claim
What Life Inurance policy provision applies if a policy lapsed last year and the insured wants it back?
Reinstatement
Margaret May wants to name her husband as the beneficiary of her Life policy; however, she wishes to retain all of the rights of ownership. Mrs. May should name her husband as:
Revocable beneficiary
Which of the following statements about a typical Suicide clause in a Life insurance policy is true?
Suicide is excluded for a specific period of years and covered thereafter
The life insurance ride that will pay the insured's premium after a period of disability due to accident or sickness is:
Waiver of Premium
The time period covered by the Free Look provision of a Life insurance contract starts:
When the insured receives the contract and makes the first premium payment, if needed
Dividend projections may be included in a proposal for life insurance when which of the following is true
there is a clear statement that payment of future dividends is not guaranteed
An insured died during the Grace period oh her life insurance policy and had not paid the required annual premium. The insurance company is obligated to pay which of the following to the beneficiary?
face amount less any earned premiums
The contingent beneficiary will receive policy proceeds when
the primary beneficiary pre-deceases the insured
The life insurance policy provision that prevents the insurer from modifying a policy after it has been issued is the
Entire Contract Clause
Which of the following is true about the Insuring Clause?
It contains the insurer's enforceable promise to pay covered claims
in a policy insuring the life of a child which of the following allows the premiums to be waived in the event of the death or disability of the person responsible for premium payments?
Payor benefit rider
dividend projections may be included in a proposal for Life insurance:
when there is a clear statement that they are not guaranteed
Grandma owns a policy on her grandchild. Which rider would kick in if Grandma should die tomorrow?
Payor Benefit Rider
