Life Policy Provisions

If an insured continually uses the automatic premium option to pay the policy premium

The policy will terminate when the cash value is reduced to nothing

He waive of cost of insurance rider is found in what type of insurance

Universal life

An individual is purchasing a permanent kife jbsustance policy with the face value of 25,000. While this is alk the jnsurance that he can afford at this thime, he wants to sure yhat additiknal coverage will be availabkr in the future . Which should be jncluded in the feature?

Guarenteed insurabke option

Which of the following is NOT typically excluded from life policies

Death due to a plane crash for a fare-paying passenger

Which nonforfeiture option provides coverage for the longest period of time

Reduced paid up

I applied for life insurance policy on Jan 10. The policy was issued on January 31. J agent was on vacationing at the time the policy was issued so j did not receive the policy until February 18. J decides that he does no want the policy. When would J need to return the policy to insurer in order to receive a full refund of premium paid?

The 10th day free look period begins when the policy is delivered

What is the waiting period inns waiver of premium rider in life insurance policy

6 months

An insured misstated her age at the time of the life insurance application is taken. The misstatement may result in

Adjustment in the amount of death benefit.

What is the term for how frequent a policy owner is required to pay the policy premium

Mode

A rider attached to a life insurance policy that provides coverage in the insured family members is called the

Other insured rider

An insured has a life insurance policy participating company and recovers quarterly dividends. He has instructed the company to apply policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid up additions

Which of the following is true about the premium on the children rider in a life insurance policy

It remains the same no matter how many children are added to policy

Which of the following statements is true concerning the accidental death rider

It will pay double or triple the face amount

Which option is being utilized when the insurer accumulates dividends at the interest and then uses the accumulated dividends plus interest and the policy cash value to pay the policy up early.

Paid up option

If the policy-owner, the insured, and the beneficiary under life insurance policy are the different people, who has the ownership rights

Policy owner

An insured pays 1200 annually for her life life insurance premium. The insured applies this years 300 worth of accumulation dividends to the next years premium thus reducing it to 900. What option does this describe

Reduction of premium

The rider us offers used in business life insurance policies such as key employee policies when the policy owner may need to change the insured under the policy

Substitute insured rider

Which of the following when attached to a permanent life insurance policy allows the policy owner to customize the policy to provide an additional amount of temporary insurance of the insured or allows amounts of temporary insurance to cover other family members

Term rider

Which of the following when attached to a permanent life insurance policy allows the policy owner to customize the policy to provide an additional amount of temporary insurance of the insured, or allows amounts of temporary to cover other family members

Term rider

The sole beneficiary of a policy dies before the insured. If the policy owner fails to change the beneficiary before the insured death the proceeds of the policy will go to

The insurers estate

What is the porpose of a fixed period settlement option

To provide a guaranteed income for a certain amount of time.

The accelerated benefits will provide for an early payment of death benefit when the insured

Becomes terminally ill

Which rider when attached to permanent life insurance policy provides an amount of insurance on every family memeber

Family term rider

Which of the following riders would not cause the death benefits to increase

Patrol benefit rider

A policy fails to pay the premium due in his whole life policy after the grace period passes, but the policy remains in force. This is due to provisions

Automatic premium loan

Which is true about a spouse term rider

The rider is usually level term insurance

The policy mown we wants to make sure that upon death the life policy will pay a portion of the polio reds annually to his spouse but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose

Interest only option

What is the name of the clause that is included in the policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military.

Military service or war

An insured has a life insurance policy from a participating company and revived quartet dividends.hey 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

Under an extension term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

What is the other ten for the cash payment settlement option

Lump sum

When a policy is surrendered for its cash value

Coverage ends and the policy can not be reinstated

Which type of beneficiary is changeable at any point

Revocable

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured death he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following except

The insure reds age at death Note: The insureds age at death will not be considered, but the longer the life expectancy of the recipient. The lower the payments will be

According to the entire contact provision what document must be made part of the insurance policy

Copy of the original application

Which nonforfeiture option has the highest amount of insurance protection

Extended term

All of the following are dividend options except

Fixed period installments

Because if Finacial obligation John felt that he needed more insurance than the insurer was willing to issue johns insurance producer told him that he could maximize the death benefit without increasing the face amount of the use of an

Return of premium rider

Which settlement option allows the usurer to retain the face amount but pay some income based on gain in the proceeds to the beneficiary at regular intervals

Interest only

If a settlement option is not chosen by the beneficiary or policy owner which option will be usedb

Lump sum

If a life insurance policy has an irrevocable beneficiary designation

The beneficiary can only be changed with written permission of the beneficiary