S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT
  • Full face amount minus any past due premiums
  • $50,000
  • beneficiary's age
  • Payor clause
Which statement regarding the Misstatement of Age provision is considered to be true?
  • Evidence of insurability is required when the option is exercised
  • Modify a provision in the insurance contract
  • Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered
  • Insured must be eligible for Social Security disability for claim to be accepted
Which of these are NOT an example of a Nonforfeiture option?
  • Term rider
  • Insuring clause
  • Who the policyowner is and what rights the policyowner is entitled to
  • Life Income
N is covered by a Term Life policy and does not make the required premium payment which was due AugustN dies SeptemberWhat action will the insurer take?
  • P will still receive declared dividends
  • Claim will be denied
  • Payor clause
  • beneficiary's age
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
  • Must have a terminal illness to qualify
  • Insured must be eligible for Social Security disability for claim to be accepted
  • Evidence of insurability is required when the option is exercised
  • Modify a provision in the insurance contract
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
  • Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered
  • Insured must be eligible for Social Security disability for claim to be accepted
  • at future dates specified in the contract with no evidence of insurability required
  • Evidence of insurability is required when the option is exercised
The Consideration clause in a life insurance contract contains what pertinent information?
  • Amount of premium payments and when they are due
  • Claims are denied under the Suicide clause of the policy
  • Who the policyowner is and what rights the policyowner is entitled to
  • Entire Contract provision
How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period?
  • Amount of premium payments and when they are due
  • Insuring clause
  • Claims are denied under the Suicide clause of the policy
  • Pay face amount minus the past due premium
Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?
  • Reduced Paid-Up
  • Must have a terminal illness to qualify
  • Modify a provision in the insurance contract
  • Payor clause
Which of the following statements is CORRECT about accelerated death benefits?
  • Modify a provision in the insurance contract
  • Payor clause
  • Evidence of insurability is required when the option is exercised
  • Must have a terminal illness to qualify
S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?
  • $50,000 minus any outstanding policy loans
  • Automatic Policy Loan
  • Policy Loan provision
  • avoid a policy lapse
Which of these life insurance riders allows the applicant to have excess coverage?
  • Life Income
  • Entire Contract provision
  • Term rider
  • Insuring clause
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?
  • P will still receive declared dividends
  • Must have a terminal illness to qualify
  • Full face amount minus any past due premiums
  • Modify a provision in the insurance contract
All of these statements about the Waiver of Premium provision are correct EXCEPT
  • Insured must be eligible for Social Security disability for claim to be accepted
  • Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered
  • at future dates specified in the contract with no evidence of insurability required
  • Evidence of insurability is required when the option is exercised
What does the ownership clause in a life insurance policy state?
  • Who the policyowner is and what rights the policyowner is entitled to
  • Claims are denied under the Suicide clause of the policy
  • Amount of premium payments and when they are due
  • Life Income
The incontestable clause allows an insurer to
  • contest a claim during the contestable period
  • Must have a terminal illness to qualify
  • Evidence of insurability is required when the option is exercised
  • Modify a provision in the insurance contract
D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?
  • $50,000
  • Payor clause
  • P will still receive declared dividends
  • Ex-wife
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
  • Reduced Paid-Up
  • exclusion
  • Payor clause
  • Claim will be denied
P purchases a $50,000 term life insurance policy inOne of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident inWhat will the insurer pay to P's beneficiary?
  • avoid a policy lapse
  • $50,000 minus any outstanding policy loans
  • Automatic Policy Loan
  • Policy Loan provision
What provision in a life insurance policy states that the application is considered part of the contract?
  • Entire Contract provision
  • Amount of premium payments and when they are due
  • Insuring clause
  • Term rider
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