Life Insurance Policies - Provisions,
Options and Riders - 2
Which of these is NOT a characteristic of the Accelerated Death Benefit option?
The face amount and policy premium are not affected by the payment
Before payment of the benefit is made, specific conditions must exist, such as suffering from
a terminal illness
There may be a dollar limit on the maximum benefit
The benefit can be offered as a rider at a specific extra cost or may be at no cost - correct
answer-The benefit can be offered as a rider at a specific extra cost or may be at no cost
Of the following dividend options, which of these is taxable?
Reduction of premium
One year term
Paid-up additions
Accumulation at interest - correct answer-Accumulation at interest
Which of these is considered to be a Living Benefit option in a life insurance policy?
Reinstatement
Waiver of premium
Accelerated death benefit
Payor benefit - correct answer-Accelerated death benefit
What is the name of the provision which states that a copy of the application must be
attached to the policy when issued?
Policy Summary
Buyer's Guide
Entire Contract
Entire Policy - correct answer-Entire Contract
, In what part of an insurance policy are policy benefits found?
Declarations
Entire contract
Waivers
Conditions - correct answer-Declarations
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n)
partial surrender
waiver of premium
automatic premium loan
grace period - correct answer-partial surrender
The double indemnity provision in a life insurance policy pertains to an insured's death
caused by a(n)
sickness
suicide
accident
war - correct answer-accident
A provision that allows a policyowner to temporarily give up ownership rights to secure a
loan is called a(n)
automatic premium loan
nonforfeiture option
collateral assignment
irrevocable assignment - correct answer-collateral assignment
All of these are standard exclusions found in a life insurance policy EXCEPT
hazardous occupations
aviation
Options and Riders - 2
Which of these is NOT a characteristic of the Accelerated Death Benefit option?
The face amount and policy premium are not affected by the payment
Before payment of the benefit is made, specific conditions must exist, such as suffering from
a terminal illness
There may be a dollar limit on the maximum benefit
The benefit can be offered as a rider at a specific extra cost or may be at no cost - correct
answer-The benefit can be offered as a rider at a specific extra cost or may be at no cost
Of the following dividend options, which of these is taxable?
Reduction of premium
One year term
Paid-up additions
Accumulation at interest - correct answer-Accumulation at interest
Which of these is considered to be a Living Benefit option in a life insurance policy?
Reinstatement
Waiver of premium
Accelerated death benefit
Payor benefit - correct answer-Accelerated death benefit
What is the name of the provision which states that a copy of the application must be
attached to the policy when issued?
Policy Summary
Buyer's Guide
Entire Contract
Entire Policy - correct answer-Entire Contract
, In what part of an insurance policy are policy benefits found?
Declarations
Entire contract
Waivers
Conditions - correct answer-Declarations
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n)
partial surrender
waiver of premium
automatic premium loan
grace period - correct answer-partial surrender
The double indemnity provision in a life insurance policy pertains to an insured's death
caused by a(n)
sickness
suicide
accident
war - correct answer-accident
A provision that allows a policyowner to temporarily give up ownership rights to secure a
loan is called a(n)
automatic premium loan
nonforfeiture option
collateral assignment
irrevocable assignment - correct answer-collateral assignment
All of these are standard exclusions found in a life insurance policy EXCEPT
hazardous occupations
aviation
