Life Policy Provisions, Riders and Options
All of the following are rue regarding the guaranteed insurability rider EXCEPT?
It is available automatically, for no extra premium.
Which of the following is true about the free-look period in a life insurance policy?
It starts when the policy is delivered.
The insured usually pays $1,200 annually for her life insurance premium. This year, she has accumulated $175 in dividends, and applied that to her next premium, reducing it to $1,025. What dividend option has the insured chosen?
Reduction of premium
Which of the following statements is true of both the fixed-period and fixed-amount settlement options?
Both guarantee that the principal and interest will be fully paid out.
A life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the......?
Incontestability cause
When a death claim is submitted, the insurer discovered that the insured understated her age on the application for a life policy. what action will the insurer take?
Pay a reduced death benefit based on the insured's actual age.
If a life insurance policy has an irrevocable beneficiary designation,...?
The beneficiary can only be changed with written permission of the beneficiary.
All of the following are nonforfeiture options in life insurance policies EXCEPT....?
Automatic premium loans.
which of the following refers to the transfer of some or all the ownership rights of a life insurance policy from one individual to another?
Assignment
The rider in a whole life policy that allows the company to forgo collection the premium if the insured is disabled is called.....?
Waiver of premium
Which of the following is NOT a standard exclusion in life insurance policies?
Disability
Which provision of a life insurance policy states that the applications is part of the contract?
Entire contract
A spouse receives $5,000.00 a month until the principal and interest on her husband's life insurance policy have been paid out. Which settlement options did this beneficiary choose?
Fixed amount
Which of the following features allows an insurance policy to remain in force for a specific number of days beyond the premium due date?
Grace period provision
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured.
