XCEL Chapter Exam - Life Provisions
Questions and Answers
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - Answers -Accidental Death and Dismemberment
rider (AD&D)
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
Answers -$20,000 death benefit
D owns a Whole Life policy that was purchased 10 years ago. If the premium payments
suddenly stop and D takes no additional action, which Nonforfeiture Option will the
insurer likely proceed with? - Answers -Extended term
What is the Suicide provision designed to do? - Answers -safeguard the insurer from an
applicant who is contemplating suicide
Dividends paid from a life insurance policy are - Answers -issued by the insurer
a life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached? - Answers -waiver of premium
in a life insurance policy, which provision states who may select policy options,
designate and name a beneficiary, and be the recipient of any financial benefits from
the policy? - Answers -owner's rights
P is blinded in an industrial accident. Which provision of his life insurance policy will pay
a stated benefit amount? - Answers -Accidental Death and Dismemberment clause
P died five years after purchasing a life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process.
Which of these actions will the insurer take? - Answers -beneficiary will be paid the
death benefit
How are surrender charges deducted in a life policy with a rear-end loaded provision? -
Answers -deducted when the policy is discontinued
Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
__________ option is a method of distributing a Life Insurance policy's death benefit
OTHER than by a lump sum payment. - Answers -settlement
Questions and Answers
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - Answers -Accidental Death and Dismemberment
rider (AD&D)
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
Answers -$20,000 death benefit
D owns a Whole Life policy that was purchased 10 years ago. If the premium payments
suddenly stop and D takes no additional action, which Nonforfeiture Option will the
insurer likely proceed with? - Answers -Extended term
What is the Suicide provision designed to do? - Answers -safeguard the insurer from an
applicant who is contemplating suicide
Dividends paid from a life insurance policy are - Answers -issued by the insurer
a life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached? - Answers -waiver of premium
in a life insurance policy, which provision states who may select policy options,
designate and name a beneficiary, and be the recipient of any financial benefits from
the policy? - Answers -owner's rights
P is blinded in an industrial accident. Which provision of his life insurance policy will pay
a stated benefit amount? - Answers -Accidental Death and Dismemberment clause
P died five years after purchasing a life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process.
Which of these actions will the insurer take? - Answers -beneficiary will be paid the
death benefit
How are surrender charges deducted in a life policy with a rear-end loaded provision? -
Answers -deducted when the policy is discontinued
Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
__________ option is a method of distributing a Life Insurance policy's death benefit
OTHER than by a lump sum payment. - Answers -settlement
