XCEL Chapter 4 Part 2
All of these are valid policy dividend options for a life insurance policyowner EXCEPT...
accumulate without interest
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a...
collateral assignment
Ownership of a life insurance policy may be temporarily transferred with a...
collateral assignment
In what part of an insurance policy are policy benefits found?
declarations
What is the name of the provision which states that a copy of the application must be attached to the policy when issued?
entire contract
An endorsement found in an insurance plan which modifies the provisions of the policy is called a...
rider
All of the following riders can increase the death benefit amount EXCEPT...
waiver of premium
A waiver of premium rider allows an insured to waive premium payments if the insured is...
completely and permanently disabled
What is an insurer required to do when faced with an error made under the Misstatement of Age provision?
pay age-corrected benefits
Which situation accurately describes a reduced paid-up nonforfeiture option?
policy has a decreased face amount
Which of these is NOT a characteristic of the Accelerated Death Benefit option?
the benefit can be offered as a rider at a specific extra cost or may be at no cost
James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?
the death benefit paid will be what the premium would have purchased at the correct age
Which of these is considered to be a Living Benefit option in a life insurance policy?
accelerated death benefit
A whole life policy option where extended term insurance is selected is called a
nonforfeiture option
All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT...
reduction of premium
A life insurance policyowner does NOT have the right to...
revoke an absolute assignment
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?
results
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
the policy may be paid up early by using policy dividends
Loans obtained by a policyowner against the cash value of a life insurance policy...
would not be treated as taxable income
Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?
accumulation at interest option
