Xcel- policy provisions

Which of the following is a reinstatement condition?

Proof of insurabiilty

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? A) Reduction of premium dividend option B) Extended term option C) Paid-up option D) Cash dividend option

Reduction of premium dividend option

Loans obtained by a policyowner against the cash value of a life insurance policy

Would not be treated as a taxable income. Loans may generally be obtained against the cash value of a personal life insurance and are not treated as taxable income.

All of these are valid policy dividend options for a life insurance policyowner EXCEPT

accumulate without interest (policy owner dividends normally accumulate with interest))

The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid

minus indebtness and without interest The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and without interest.

The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of

past due premiums that have not been paid by the end of the grace period In a life insurance cash value policy, the automatic premium loan provision authorizes the insurance company to withdraw from the policy's cash values the amount of premiums due if the premium has not been paid by the end of the grace period.

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

the benefit can be offered as a rider and a specific extra cost or may be at no cost CORRECT: the face amount and policy premium are not affected by the payment, before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness, there may be a dollar amount on the maximum benefit

Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires,

the protection ends When the term insurance expires in an extended term option, there is no more protection.