Chapter 3 (Part 2) – Flashcards

When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

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

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

What provision in a life insurance policy states that the application is considered part of the contract?

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

Which of these is NOT considered to be a right given to a policyowner?

How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period?

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the

What does the ownership clause in a life insurance policy state?

The automatic premium loan provision is designed to

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the

The Consideration clause in a life insurance contract contains what pertinent information?

The incontestable clause allows an insurer to

All of these statements about the Waiver of Premium provision are correct EXCEPT

Which of the following statements is CORRECT about accelerated death benefits?

Which statement regarding the Misstatement of Age provision is considered to be true?

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?

Which of these life insurance riders allows the applicant to have excess coverage?

P purchases a $50,000 term life insurance policy in 2005. One 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 in 2011. What will the insurer pay to P's beneficiary?

Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?

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?

Which of these are NOT an example of a Nonforfeiture option?

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?

Which of these Nonforfeiture Options continue a build-up of cash value?

What action will an insurer take if an interest payment on a policy loan is not made on time?

What is the Suicide provision designed to do?

The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

How are surrender charges deducted in a life policy with a rear-end loaded provision?

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take?

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?