Alabama life and health | 150 Questions and Answers with complete solution

Billy is the owner of a life insurance policy and has chosen a policy settlement option under which the company will pay the beneficiary (his widow) an income each month for as long as she lives. Payment stops at her death. Which settlement option has Billy selected? A. Fixed amount option B. Fixed period option C. Interest only option D. Life income option - D. Life income option A man with an Accidental Death & Dismemberment (AD&D) policy having a Principal Sum of $100,000 and a Capital Sum of $50,000 loses a leg due to a blood clot which was not due to an accident. The policy will pay A. $0 Your Answer B. $50,000 C. $100,000 D. $150,000 - 0 According to Required Health Policy Provisions, the insured is prevented from filing suit against the insurer for at least A. 20 days and not longer than one year from the date of proof of loss. B. 30 days and not longer than three years from the date of proof of loss. C. 60 days and not longer than three years from the date of proof of loss. D. 90 days and not longer than five years from the date of proof of loss. - 60 days The fact that insurance is more likely to be purchased by people who expect to experience a loss is known asA. the law of large numbers. B. estoppel. C. adverse selection. D. the risk selection process. - adverse selection