LOMA 281 Module 3 Solved Correctly Latest Update 2027, Graded
A+
Question 1.
Waiver of premium for disability (WP) Benefit
Correct Answer: A supplemental life insurance policy benefit under which the
insurer promises to give up—to waive—its right to collect premiums that become
due while the insured is totally disabled.
- satisfies a 3-6 month waiting period: meaning for the first 3-6 months the
person must cover it
Question 2.
The WP benefit typically defines total disability for the insured as being unable to perform
the duties of? a. Any occupation b. The insured's own previous occupation c. Any
occupation for which the insured is reasonably suited by education, training, or experience
Correct Answer: C.
Question 3.
Waiver of premium for payor benefit
Correct Answer: A supplemental life insurance policy benefit which provides
that the insurance company will waive the right to collect a policy's renewal
premiums if the policyowner dies or becomes totally disabled.
Question 4.
To add a waiver of premium for payor benefit to a life insurance policy, who do you think
must be insurable? a. The insured b. The policyowner c .Both the insured and the
policyowner d. Neither the insured or the policyowner
Correct Answer: C.
Question 5.
Wavior of premium for disability benefits compared
Correct Answer: Insurer waives policy premiums if the insured becomes totally
disabled. Designed for policies in which the policyowner is also the policy's
insured Total disability defined as
• The insured's inability to perform the essential duties of her own occupation
OR any other occupation for which she is reasonably suited by education,
training, or experience.
,Question 6.
Wavior of premium for payor benefit compared
Correct Answer: Insurer waives policy premiums if the policyowner dies or
becomes totally disabled. Designed for third-party policies in which the
policyowner is not the policy's insured Total disability defined as
• The policyowner's inability to perform the essential duties of her own
occupation during the first two years of disability
• The policyowner's inability to perform the essential duties of any occupation
for which she is reasonably entitled by education, training, or experience after
the first two years of disability
Question 7.
Disability Income Benefit
Correct Answer: A supplemental life insurance policy benefit that provides a
monthly income benefit to the policyowner-insured if she becomes totally
disabled while the policy is in force.
- 3- 6 month waiting period
- some for riders provide a partially disabled benefit
Question 8.
Identify the supplemental dis- ability benefit rider with its example. The UL insurance
policy Drew Stephens owns on his life includes a rider that will pay him a monthly benefit if
he becomes totally disabled. a. Disability income benefit rider b. Waiver of premium for
payor rider c. Waiver of premium for disability rider
Correct Answer: A.
Question 9.
A rider on Mary Margaret Satterfield's insurance policy specifies that her insurer will pay
her renewal premiums if she becomes disabled. a. Disability income benefit rider b. Waiver
of premium for payor rider c. Waiver of premium for disability rider
Correct Answer: C.
Question 10.
A rider on Benjamin Mumford's policy covering the life of his daughter provides that the
insurer will waive the policy's renewal premiums if Mr. Mumford dies or becomes totally
disabled. a. Disability income benefit rider b. Waiver of premium for payor rider c. Waiver
of premium for disability rider
Correct Answer: B.
,Question 11.
accidental death benefit
Correct Answer: A supplemental life insurance policy benefit that provides a
death benefit in addition to the policy's basic death benefit if the insured dies as
a result of an accident.
- double indemnnity: doubles the face amount payable when the insured dies in
an accident -
Question 12.
Why is an accidental death benefit sometimes called a double indemnity benefit? a. It
frequently doubles the policy's face amount b. It requires two forms of proof that the death
was accidental c. It doubles the premium for the coverage
Correct Answer: A.
Question 13.
Accidental death benefit riders typically include certain exclusions. In other words, the
insurer will not pay accidental death benefits if the insured's death results from certain
stated causes. Which of the following causes of death do you think are typically excluded?
(Choose all that apply.) a. Death resulting from suicide b. Death as a result of war-relat- ed
accidents c. Aviation-related accidents other than as a passenger on an airplane d. Death
occurring during the commission of a crime
Correct Answer: A, B, C & D
Question 14.
Some life insurance policies include an accidental death and dismemberment benefit. Do
you think that such policies pay two benefits: one for death caused by an accident and an
additional benefit if the deceased is dismembered in the accident? a. Yes b. No c.
Sometimes
Correct Answer: B.
Question 15.
Accidental death and dismemberment (AD&D) benefit
Correct Answer: A supplemental life insurance policy benefit that provides an
accidental death benefit and provides a dismemberment benefit payable to the
insured if an accident causes the insured to lose any two limbs or the sight in
both eyes.
- the dismemeberment benefit amount is same as accidental death benefit
- a smaller benefit may be payable for loss of one limb or one eye
, Question 16.
Kevin Walter was the policyowner-insured of a $75,000 life insurance policy that included a
typical $75,000 accidental death and dismemberment (AD&D) benefit rider. While his
policy was in force, Mr. Walter, who had been diagnosed with terminal stomach cancer,
died in a traffic accident. If Mr. Walter's insurance company determines that the accident
was the cause of his death, the total death benefit payable to the policy's beneficiary
would be a. 0 b. $75,000 c. $150,000
Correct Answer: C.
Question 17.
Kevin Walter was the policyowner-insured of a $75,000 life insurance policy that included a
typical $75,000 accidental death and dismemberment (AD&D) benefit rider. While his
policy was in force, Mr. Walter, who had been diagnosed with terminal stomach cancer,
died in a traffic accident. If Mr. Walter from the previous question had survived the
accident but had lost one arm and one leg, the benefit rider would have provided him with
a dismemberment benefit of a. 0 b. $75,000 c. $150,000
Correct Answer: B.
Question 18.
accelerated death benefit (living benefit)
Correct Answer: A supplemental life insurance policy benefit which provides
that a policyowner may elect to receive all or part of the policy's death benefit
before the insured's death if certain conditions are met. Also known as a living
benefit.
- typically over 100k:
- payment reduces death benefit to the beneficiary
- usually, paid in a lump sum that is 25% to 75% of the policy face amount
Question 19.
Terminal illness (TI) benefit
Correct Answer: A supplemental life insurance policy benefit under which the
insurer pays a portion of the policy's death benefit to a policyowner if the
insured is suffering from a terminal illness and has a physician-certified life
expectancy less than a stated time, generally 12 or 24 months.
- ti benefits are commonly used to pay for medical care, living expenses, or
outstanding debts, they can be used for any purpose, such as travel expense
two other forms of accelerated death benefits:
- dread disease benefit
- long-term care insurance benefit
A+
Question 1.
Waiver of premium for disability (WP) Benefit
Correct Answer: A supplemental life insurance policy benefit under which the
insurer promises to give up—to waive—its right to collect premiums that become
due while the insured is totally disabled.
- satisfies a 3-6 month waiting period: meaning for the first 3-6 months the
person must cover it
Question 2.
The WP benefit typically defines total disability for the insured as being unable to perform
the duties of? a. Any occupation b. The insured's own previous occupation c. Any
occupation for which the insured is reasonably suited by education, training, or experience
Correct Answer: C.
Question 3.
Waiver of premium for payor benefit
Correct Answer: A supplemental life insurance policy benefit which provides
that the insurance company will waive the right to collect a policy's renewal
premiums if the policyowner dies or becomes totally disabled.
Question 4.
To add a waiver of premium for payor benefit to a life insurance policy, who do you think
must be insurable? a. The insured b. The policyowner c .Both the insured and the
policyowner d. Neither the insured or the policyowner
Correct Answer: C.
Question 5.
Wavior of premium for disability benefits compared
Correct Answer: Insurer waives policy premiums if the insured becomes totally
disabled. Designed for policies in which the policyowner is also the policy's
insured Total disability defined as
• The insured's inability to perform the essential duties of her own occupation
OR any other occupation for which she is reasonably suited by education,
training, or experience.
,Question 6.
Wavior of premium for payor benefit compared
Correct Answer: Insurer waives policy premiums if the policyowner dies or
becomes totally disabled. Designed for third-party policies in which the
policyowner is not the policy's insured Total disability defined as
• The policyowner's inability to perform the essential duties of her own
occupation during the first two years of disability
• The policyowner's inability to perform the essential duties of any occupation
for which she is reasonably entitled by education, training, or experience after
the first two years of disability
Question 7.
Disability Income Benefit
Correct Answer: A supplemental life insurance policy benefit that provides a
monthly income benefit to the policyowner-insured if she becomes totally
disabled while the policy is in force.
- 3- 6 month waiting period
- some for riders provide a partially disabled benefit
Question 8.
Identify the supplemental dis- ability benefit rider with its example. The UL insurance
policy Drew Stephens owns on his life includes a rider that will pay him a monthly benefit if
he becomes totally disabled. a. Disability income benefit rider b. Waiver of premium for
payor rider c. Waiver of premium for disability rider
Correct Answer: A.
Question 9.
A rider on Mary Margaret Satterfield's insurance policy specifies that her insurer will pay
her renewal premiums if she becomes disabled. a. Disability income benefit rider b. Waiver
of premium for payor rider c. Waiver of premium for disability rider
Correct Answer: C.
Question 10.
A rider on Benjamin Mumford's policy covering the life of his daughter provides that the
insurer will waive the policy's renewal premiums if Mr. Mumford dies or becomes totally
disabled. a. Disability income benefit rider b. Waiver of premium for payor rider c. Waiver
of premium for disability rider
Correct Answer: B.
,Question 11.
accidental death benefit
Correct Answer: A supplemental life insurance policy benefit that provides a
death benefit in addition to the policy's basic death benefit if the insured dies as
a result of an accident.
- double indemnnity: doubles the face amount payable when the insured dies in
an accident -
Question 12.
Why is an accidental death benefit sometimes called a double indemnity benefit? a. It
frequently doubles the policy's face amount b. It requires two forms of proof that the death
was accidental c. It doubles the premium for the coverage
Correct Answer: A.
Question 13.
Accidental death benefit riders typically include certain exclusions. In other words, the
insurer will not pay accidental death benefits if the insured's death results from certain
stated causes. Which of the following causes of death do you think are typically excluded?
(Choose all that apply.) a. Death resulting from suicide b. Death as a result of war-relat- ed
accidents c. Aviation-related accidents other than as a passenger on an airplane d. Death
occurring during the commission of a crime
Correct Answer: A, B, C & D
Question 14.
Some life insurance policies include an accidental death and dismemberment benefit. Do
you think that such policies pay two benefits: one for death caused by an accident and an
additional benefit if the deceased is dismembered in the accident? a. Yes b. No c.
Sometimes
Correct Answer: B.
Question 15.
Accidental death and dismemberment (AD&D) benefit
Correct Answer: A supplemental life insurance policy benefit that provides an
accidental death benefit and provides a dismemberment benefit payable to the
insured if an accident causes the insured to lose any two limbs or the sight in
both eyes.
- the dismemeberment benefit amount is same as accidental death benefit
- a smaller benefit may be payable for loss of one limb or one eye
, Question 16.
Kevin Walter was the policyowner-insured of a $75,000 life insurance policy that included a
typical $75,000 accidental death and dismemberment (AD&D) benefit rider. While his
policy was in force, Mr. Walter, who had been diagnosed with terminal stomach cancer,
died in a traffic accident. If Mr. Walter's insurance company determines that the accident
was the cause of his death, the total death benefit payable to the policy's beneficiary
would be a. 0 b. $75,000 c. $150,000
Correct Answer: C.
Question 17.
Kevin Walter was the policyowner-insured of a $75,000 life insurance policy that included a
typical $75,000 accidental death and dismemberment (AD&D) benefit rider. While his
policy was in force, Mr. Walter, who had been diagnosed with terminal stomach cancer,
died in a traffic accident. If Mr. Walter from the previous question had survived the
accident but had lost one arm and one leg, the benefit rider would have provided him with
a dismemberment benefit of a. 0 b. $75,000 c. $150,000
Correct Answer: B.
Question 18.
accelerated death benefit (living benefit)
Correct Answer: A supplemental life insurance policy benefit which provides
that a policyowner may elect to receive all or part of the policy's death benefit
before the insured's death if certain conditions are met. Also known as a living
benefit.
- typically over 100k:
- payment reduces death benefit to the beneficiary
- usually, paid in a lump sum that is 25% to 75% of the policy face amount
Question 19.
Terminal illness (TI) benefit
Correct Answer: A supplemental life insurance policy benefit under which the
insurer pays a portion of the policy's death benefit to a policyowner if the
insured is suffering from a terminal illness and has a physician-certified life
expectancy less than a stated time, generally 12 or 24 months.
- ti benefits are commonly used to pay for medical care, living expenses, or
outstanding debts, they can be used for any purpose, such as travel expense
two other forms of accelerated death benefits:
- dread disease benefit
- long-term care insurance benefit
