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) - AnswerAccidental 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? -
Answer$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? - AnswerExtended term
.What is the Suicide provision designed to do? - Answersafeguard the insurer from an
applicant who is contemplating suicide
.Dividends paid from a life insurance policy are - Answerissued 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? - Answerwaiver 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? - Answerowner's rights
.P is blinded in an industrial accident. Which provision of his life insurance policy will
pay a stated benefit amount? - AnswerAccidental 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? - Answerbeneficiary will be paid the death
benefit
.How are surrender charges deducted in a life policy with a rear-end loaded provision? -
Answerdeducted 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. - Answersettlement
.An insured inability to perform two or more activities of daily living may trigger which
type of policy rider? - Answerlong term care
Answers
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - AnswerAccidental 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? -
Answer$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? - AnswerExtended term
.What is the Suicide provision designed to do? - Answersafeguard the insurer from an
applicant who is contemplating suicide
.Dividends paid from a life insurance policy are - Answerissued 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? - Answerwaiver 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? - Answerowner's rights
.P is blinded in an industrial accident. Which provision of his life insurance policy will
pay a stated benefit amount? - AnswerAccidental 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? - Answerbeneficiary will be paid the death
benefit
.How are surrender charges deducted in a life policy with a rear-end loaded provision? -
Answerdeducted 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. - Answersettlement
.An insured inability to perform two or more activities of daily living may trigger which
type of policy rider? - Answerlong term care
