XCEL chapter 4 exam - life provisions questions and
answers
All of these are valid policy dividend options for a life insurance policyowner EXCEPT -
Answeraccumulate without interest
.A whole life policy option where extended term insurance is selected is called a(n) -
Answernonforfeiture option
.Of the following options, which of these is taxable? - AnswerAccumulatuon at interest
.Which of these is considered to be a living benefit option in a life insurance policy? -
AnswerAccelerated death benefit
.Which of these would limit a company's liability to provide insurance coverage? -
AnswerExclusion
.If an insured's age on a life insurance policy has been misstated, what is the insurer's
liability if the insured dies? - AnswerA prorated death benefit baded on the amount of
insurance the insured's premiums would have been if purchased at the correct age
.The suicide clause of a life insurance policy states that if an insured commits suicide
within a stated peruod from the policy's inception, the insurer will only be liable for a
teturn of premiums paid - AnswerMinus indebtedness and without interest
.Which of the following is a reinstatement condition? - AnswerProof of insurability
.The automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of - AnswerPast due premiums that have not been paid by the
end of the grace period
.The two major actions required for a policyholder to comply with the reinstatement
clause are - Answerprovide evidence of insurability, pay past due premiums
.What is the name of the provision which states that a copy of the application must be
attached to the policy when issued? - AnswerEntire Contract
.A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - Answernonforfeiture
provision
.Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value.
She would like to borrow $15,000 against the cash value. Which of the following
statements is TRUE? - AnswerNet death benefit will be reduced if the loan is not repaid
answers
All of these are valid policy dividend options for a life insurance policyowner EXCEPT -
Answeraccumulate without interest
.A whole life policy option where extended term insurance is selected is called a(n) -
Answernonforfeiture option
.Of the following options, which of these is taxable? - AnswerAccumulatuon at interest
.Which of these is considered to be a living benefit option in a life insurance policy? -
AnswerAccelerated death benefit
.Which of these would limit a company's liability to provide insurance coverage? -
AnswerExclusion
.If an insured's age on a life insurance policy has been misstated, what is the insurer's
liability if the insured dies? - AnswerA prorated death benefit baded on the amount of
insurance the insured's premiums would have been if purchased at the correct age
.The suicide clause of a life insurance policy states that if an insured commits suicide
within a stated peruod from the policy's inception, the insurer will only be liable for a
teturn of premiums paid - AnswerMinus indebtedness and without interest
.Which of the following is a reinstatement condition? - AnswerProof of insurability
.The automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of - AnswerPast due premiums that have not been paid by the
end of the grace period
.The two major actions required for a policyholder to comply with the reinstatement
clause are - Answerprovide evidence of insurability, pay past due premiums
.What is the name of the provision which states that a copy of the application must be
attached to the policy when issued? - AnswerEntire Contract
.A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - Answernonforfeiture
provision
.Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value.
She would like to borrow $15,000 against the cash value. Which of the following
statements is TRUE? - AnswerNet death benefit will be reduced if the loan is not repaid
