Chapter 5: Individual Life
Insurance Contract - Provisions
and Options Quiz Questions and
Answers 100% PASS
Which of the following applies to the 10-day free-look privilege?
1) It can be waived only by the insurance company.
2) It allows the insured 10 days to pay the initial premium.
3) It is granted only at the option of the agent.
4) It permits the insured to return the policy for a full refund of premiums paid.—ANSWER---
4) It permits the insured to return the policy for a full refund of premiums paid.
For how long is an insurance company allowed to defer policy loan requests?
1) 1 year
2) 30 days
3) 6 months
4) 60 days—ANSWER---3) 6 months
, The dividend option in which the policyowner uses dividends to purchase a term policy for
one year is referred to as the
1) Accelerated endowment.
2) One-year term option.
3) Paid-up option.
4) Paid-up additions.—ANSWER---2) One-year term option.
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be
used to
1) Purchase a term rider to attach to the policy.
2) Purchase a single premium policy for a reduced face amount.
3) Pay back all premiums owed plus interest.
4) Receive payments for a fixed amount.—ANSWER---2) Purchase a single premium policy
for a reduced face amount.
Life income joint and survivor settlement option guarantees
1) Payout of the entire death benefit.
2) Payment of interest on death proceeds.
3) Income for 2 or more recipients until they die.
4) Equal payments to all recipients.—ANSWER---3) Income for 2 or more recipients until they
die.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Insurance Contract - Provisions
and Options Quiz Questions and
Answers 100% PASS
Which of the following applies to the 10-day free-look privilege?
1) It can be waived only by the insurance company.
2) It allows the insured 10 days to pay the initial premium.
3) It is granted only at the option of the agent.
4) It permits the insured to return the policy for a full refund of premiums paid.—ANSWER---
4) It permits the insured to return the policy for a full refund of premiums paid.
For how long is an insurance company allowed to defer policy loan requests?
1) 1 year
2) 30 days
3) 6 months
4) 60 days—ANSWER---3) 6 months
, The dividend option in which the policyowner uses dividends to purchase a term policy for
one year is referred to as the
1) Accelerated endowment.
2) One-year term option.
3) Paid-up option.
4) Paid-up additions.—ANSWER---2) One-year term option.
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be
used to
1) Purchase a term rider to attach to the policy.
2) Purchase a single premium policy for a reduced face amount.
3) Pay back all premiums owed plus interest.
4) Receive payments for a fixed amount.—ANSWER---2) Purchase a single premium policy
for a reduced face amount.
Life income joint and survivor settlement option guarantees
1) Payout of the entire death benefit.
2) Payment of interest on death proceeds.
3) Income for 2 or more recipients until they die.
4) Equal payments to all recipients.—ANSWER---3) Income for 2 or more recipients until they
die.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
