XCEL Chapter 4 Exam Review (2) Questions and Answers
Extended term - AnswerNOT considered a life insurance rider.
.A whole life insurance policy accumulates cash value that becomes - AnswerThe policy
loan value which the insured may borrow against
.The two major actions required for a policyholder to comply with the Reinstatement
Clause - AnswerProvide evidence of insurability, agree to a new incontestable period
.Free-look provision - AnswerGives the right to return the policy for a full refund within a
specified number of days
.Suicide clause - AnswerProtects the insurer against possible adverse selection
.Dies instantly in a car accident - AnswerMatt is applying for life insurance and requests
a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary
if Matt
.The death benefit paid will be what the premium would have purchased at the correct
age - AnswerJames is the insured on a life insurance policy where his age was
misstated on the application. Which of the following is CORRECT regarding the death
benefit amount?
.Accelerated death benefit rider - AnswerAn alternative to a life settlement
.Entire contract - AnswerThe provision that the policy and a copy of an application is
endorsed upon or attached to the policy when issued is the entire contract provision
.The policy may be paid up early by using policy dividends - AnswerPat owns a 20-pay
life policy with a paid-up dividend option. Which of the following statements is true?
.Past due premiums that have not been paid by the end of the grace period -
AnswerThe automatic premium loan provision authorizes an insurer to withdraw from a
policy's cash value the amount of
.Reduced paid nonforfeiture option - AnswerPolicy has a decreased face amount
.Exclusion - AnswerA condition which limits the company's liability to provide coverage
.Payor benefit - AnswerA payor benefit will waive the premium on a juvenile life
insurance policy if the parent paying the premium dies
.Mike has the option of using his cash value to purchase a reduced amount of paid-up
whole life insurance - AnswerMike and Ike are 30 year old identical twins. Both are in
excellent health. Each brother purchases a life policy that has a $750 annual premium.
Extended term - AnswerNOT considered a life insurance rider.
.A whole life insurance policy accumulates cash value that becomes - AnswerThe policy
loan value which the insured may borrow against
.The two major actions required for a policyholder to comply with the Reinstatement
Clause - AnswerProvide evidence of insurability, agree to a new incontestable period
.Free-look provision - AnswerGives the right to return the policy for a full refund within a
specified number of days
.Suicide clause - AnswerProtects the insurer against possible adverse selection
.Dies instantly in a car accident - AnswerMatt is applying for life insurance and requests
a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary
if Matt
.The death benefit paid will be what the premium would have purchased at the correct
age - AnswerJames is the insured on a life insurance policy where his age was
misstated on the application. Which of the following is CORRECT regarding the death
benefit amount?
.Accelerated death benefit rider - AnswerAn alternative to a life settlement
.Entire contract - AnswerThe provision that the policy and a copy of an application is
endorsed upon or attached to the policy when issued is the entire contract provision
.The policy may be paid up early by using policy dividends - AnswerPat owns a 20-pay
life policy with a paid-up dividend option. Which of the following statements is true?
.Past due premiums that have not been paid by the end of the grace period -
AnswerThe automatic premium loan provision authorizes an insurer to withdraw from a
policy's cash value the amount of
.Reduced paid nonforfeiture option - AnswerPolicy has a decreased face amount
.Exclusion - AnswerA condition which limits the company's liability to provide coverage
.Payor benefit - AnswerA payor benefit will waive the premium on a juvenile life
insurance policy if the parent paying the premium dies
.Mike has the option of using his cash value to purchase a reduced amount of paid-up
whole life insurance - AnswerMike and Ike are 30 year old identical twins. Both are in
excellent health. Each brother purchases a life policy that has a $750 annual premium.
