Finance Exam Wrong Answered Questions Chapter 4

Ace your homework & exams now with Quizwiz!

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

What limits the amount that a policyowner may borrow from a whole life insurance policy?

Cash Value

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

Cost of living rider

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest

Which of the following statements about the reinstatement provision is true?

It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the A) Juvenile Rider B) Payor Rider C)Other-Insured Rider D)Change of Insured Rider

Other- Insured Rider The other-insureds rider is useful in providing insurance for more than one family member. The type of insurance offered by this rider is usually term insurance, with the right to convert to permanent insurance

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up Option

An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?

Pay the death benefit

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?

The policy will terminate when the loan amount with interest equals or exceeds the cash value.

The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

The policyowner can specify the way proceeds are split in the policy.

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal Life


Related study sets

Mod 8 SLAAC and DHCPv6 HW Homework in Homework

View Set

Module 5 MGMT 417 Affirmative Action

View Set

3rd trimester practice exam help

View Set

GBS 151 Intro to business lesson 1 - 6

View Set

VSIM Josephine Morrow Pre-Sim & Post-Sim Answers

View Set

capitulo 8 human anatomy and Physiology examen 2

View Set

French B IB p.24 Le language muet de l'habit

View Set

Combo with "Personal Finance Review" and 1 other

View Set

Patient Education Custom Adaptive Quizzes

View Set