life provisions

a policy owner may generate taxable income from which of the following dividend options?

accumulation at interest

a term life rider offers the insured:

additional life coverage

S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?

automatic policy loan bc this provision will keep policy in force in lieu of nonpayment

The automatic premium loan provision is designed to

avoid a policy lapse

Which rider provides coverage for a child under a parent's life insurance policy?

child term rider

How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period?

claims are denied under the suicide clause of the policy

Which of these actions is taken when a policy owner uses a Life Insurance policy as collateral for a bank loan?

collateral assignment

What provision in a life insurance policy states that the application is considered part of the contract?

entire contract provision

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?

20-pay life accumulates cash value faster than straight line

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

Owner's Rights

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

ex-wife

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

exclusion

a long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following?

inability of the insured to perform more than 2 activities of daily living (ADL'S)

in a life insurance contract, an insurance company's promise to pay stated benefits is called the:

insuring clause

dividends paid from a life insurance policy are:

issued by the insurer

An insured's inability to perform two or more activities of daily living may trigger which type of policy rider?

long term care

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

p will still receive declared dividends

what is the suicide provision designed to do?

safeguard the insurer from an applicant who is contemplating suicide

typically a life insurance death benefit is paid by a lump sum payment. a ________ option is a method of distributing a life insurance policies death benefit OTHER than by a lump sum payment

settlement

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n):

the insuring agreement