Xcel Testing Solutions-Louisiana Life and Health Exam Simulator Graded A+

Which dividend option would an insurer invest the policy owner's money and add any interest earnings as the dividends accrue? -Accumulation at Interest Option -Cash Dividend Option -Paid-Up Additions Option -One-Year Term Dividend Option - Answer-The Accumulation at Interest Option - invests the policy owner's money and adds interest earnings to the initial amount of the dividends. Decreasing term life insurance is often used to? -provide retirement funds -provide coverage for a home mortgage -accumulate cash value -provide coverage for estate taxes - Answer-Provide coverage for a home mortgageA common use for decreasing term life insurance is to cover a home mortgage. Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. - - Answer-20 Written notice for a health claim must be given to the insurer 20 days after the occurrence of the loss. In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST - remit all past-due premiums within the grace period - provide evidence of insurability to the insurer - resubmit a new life insurance application -provide a valid reason for the lapse - Answer-provide evidence of insurability to the insurerThe suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid - minus indebtedness and with interest - during the last 12 months -minus indebtedness and without interest - during the last 6 months - Answer-minus indebtedness and without interest The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and without interest. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? - Policy Dividend - Specified amount of money - Policy's cash value - Funeral expense fund - Answer-Specified amount of money