Insurance Licensing Chapter 3 Exam Questions And Answers

Policyowner If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has ownership rights? To provide a guaranteed income for a certain settlement option What is the purpose of a fixed-period settlement option Joint and survivor The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called Term Children's riders attached to whole life policies are usually issued as what type of insurance Interest only All of the following are non forfeit options except: Income for 2 or more recipients until they die Life income joint and survivor settlement option guarantees Both the principal and interest will be liquidated over a selected period of time Which of the following best describes fixed-period settlement option Increasing Term What type of insurance would be used for a Return of Premium rider? Paid-up additions An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called If the primary beneficiary predecreases the insured An insured purchased a life insurance policy on his life naming his wife as a primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit Mode What is the term for how frequently a policyowner is required to pay the policy premium? Death due to plane crash for a fare-paying passenger Which of the following is NOT typically excluded from life policies? Settlement options Methods used to pay the death benefits to a beneficiary upon the insured's death are called The beneficiary can only be changed with a written permission of the beneficiary If a life insurance policy has an irrevocable beneficiary designation Guaranteed insurability rider If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a Cash surrender Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? Guaranteed insurability At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. The rider is called The beneficiary will only receive payments of the interest earned on the death benefit Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean? Return of premium When an insured under a life insurance policy died, the designation beneficiary received the face amount of the policy, as well as a refund of all pf the premiums paid. Which rider is attached to the policy Other Insured Rider A rider attached to a life insurance policy that provides coverage on the insured's family members is called the