Insurance

he insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

100,000

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

6 months

A Universal Life Insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account.

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Must be informed of the source of the report.

A domestic insurer issuing variable contracts must establish one or more

Separate accounts.

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6 credits

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

Convertible Term Policy.

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusions Clause

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection.

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant

With the policy

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

A debtor has an insurable interest in the life of a lender.

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring Clause

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

What is a definition of a unilateral contract?

One-sided: only one party makes an enforceable promise.

Which part of an insurance application would contain information regarding the applicant's medical history?

Part 2

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation on accumulation

Which of the following is NOT true of life settlements?

The seller must be terminally ill