Life Insurance Pollicies - Provisions, Options and Riders (Part 2)
Waiver of Premium
All of the following riders can increase the death benefit amount EXCEPT
accumulate without interest
All of these are valid options for what a policyowner may do with policy dividends EXCEPT
Age
An error was made on Mary's lie insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply?
the insured outlived the beneficiary
An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if
Grace period
An insurer will accept a premium from the insured and continue the coverage in full force as through it was NOT late during which time period?
the protection ends
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,
Accumulation at interest
Of the following dividend options, which of these is taxable?
collateral assignment
Ownership of a life insurance policy may be temporarily transferred with a(n)
minus indebtedness 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
provide evidence of insurability, pay past due premiums
The two major actions required for a policyholder to comply with the Reinstatement Clause are
Period of time after the premium is due but the policy remains in force
What is an insurance policy's grace period?
Pay age-corrected benefits
What is an insurer required to do when faced with an error made under the Misstatement of Age provision?
Entire Contract
What is the name of the provision which states that a copy of the application must be attached to the policy when issued?
Accelerated death benefit rider
Which of the following is considered to be an alternative to a life settlement?
Incontestable clause
Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?
The benefit can be offered as a rider at a specific extra cost or may be at no cost
Which of these is NOT a characteristic of the Accelerated Death Benefit option?
medical underwriting
A guaranteed issue insurance policy has no
fare-paying passenger
A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT
revoke an absolute assignment
A life insurance policyowner does NOT have the right to
Reduction of premium dividend option
A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
Reduction of the premium dividend option
A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
nonforfeiture provision
A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n)
collateral assignment
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)
partial surrender
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n)
completely and permanently disabled
A waiver of premium rider allows an insured to waive premium payments if the insured is
the policy loan value which the insured may borrow against
A whole life insurance policy accumulates cash value that becomes
the policy would be payable, minus the premium amount
If an insured dies during the grace period with no premiums paid
A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age
If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies?
provide evidence of insurability to the insurer
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
The death benefit paid will be what the premium would have purchased at the correct age
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?
Results
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?
commercial aviation
Life insurance policies will normally pay for losses arising from
dies instantly from a car accident
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt
past due premiums that have not been paid by the end of the grace period
The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of
accident
The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n)
Life income annuity
Which of these is NOT considered to be a common life insurance nonforfeiture option?
Interest only
Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy?
Accelerated death benefit
Which of these is considered to be a Living Benefit option in a life insurance policy?
Policy has a decreased face amount
Which situation accurately describes a reduced paid-up nonforfeiture option?
