Life Insurance Policies-Provisions,
Options, and Riders 4 b Questions And
Answers
Aclifecinsurancecpolicycownercwouldclikecacdividendcoptioncthatcresultscincaclimitedccurrentco
utlaycofcfunds.cWhichcdividendcoptioncwouldcbecchosen
a.cpaid-upcadditions
b.caccumulationcofcinterest
c.c1-yearcterm
d.creductioncofcpremiumcpaymentc-cCORRECTccANSWER-reductioncofcpremiumcpayment
Aclifecinsurancecpolicycprovisioncthatchascthecabilityctocreducecthecdeathcbenefitcisccalledcthe
a.cacceleratedc(living)cbenefit
b.cinsuringcclause
c.cpayorcbenefit
d.cspendthriftcclausec-cCORRECTccANSWER-acceleratedc(living)cbenefit
Aclifecinsurancecpolicycthatccontainscancacceleratedc(living)cbenefitcridercwillcprovidecfundscif
cthec
a.cinsuredciscexpectedctocbecconfinedctocacnursingchomecforclife
b.cinsuredcrecentlychadcacminorcheartcattack
c.cinsuredchasclostcusecofconecarm
d.cinsuredcischavingcdirecfinancialcproblemsc-cCORRECTccANSWER-
insuredciscexpectedctocbecconfinedctocacnursingchomecforclife
Aclifecinsurancecpolicycthatcincludescacreturncofcpremiumcridercwillcpaycthecbeneficiarychowc
muchcuponcthecinsured'scdeath
a.ctotalcpremiumscpaidcpluscthecpolicycfacecamount
b.cfacecamountcpluscinterestcaccrued
c.cinterestcaccruedcplusctotalcpremiumscpaid
d.cfacecamountcminuscanycoutstandingcloancbalancesc-cCORRECTccANSWER-
totalcpremiumscpaidcpluscthecpolicycfacecamount
Aclifecinsurancecpolicy'scwaivercofcpremiumcriderchascthecabilityctoc
, a.cwaivecthecpremiumcpaymentscinctheceventcthecinsuredcbecomescfinanciallycinsolvent
b.crelievecthecinsuredcofcpremiumcpaymentscfollowingcancinitialcwaitingcperiodcaftercthecinsu
redcbecomesctotallycdisabled
c.cprovidecacpolicycloanctoccovercthecpremiumcpaymentscinctheceventcthecinsuredcbecomesct
otallycdisabled
d.cwaivecthecpremiumsconcthiscpolicycascwellcascanycothercinsurancecpoliciescbelongingctoct
hecinsuredcintcheceventcofctotalcdisabilityc-cCORRECTccANSWER-
relievecthecinsuredcofcpremiumcpaymentscfollowingcancinitialcwaitingcperiodcaftercthecinsure
dcbecomesctotallycdisabled
Acpolicycownerchascaclifecinsurancecpolicy,cwherecshechadclistedchercageconcthecapplicationc
asc5cyearscyoungercthanchercactualcage.cIfchecdiescandcthecinsurercdiscoverscthecmisstatem
entcofcage,chowcmuchcwillcthecinsurancecpolicycpay?
a.cnothing
b.cmorecthancthecfacecamount
c.clesscthancthecfacecamount
d.cfullcfacecamountc-cCORRECTccANSWER-lesscthancthecfacecamount
Aftercthecextendedctermclifecnonforfeiturecoptionciscchosen,cthecavailablecinsurancecwillcbec
a.cincreasingctermcforcacstatedcperiodcofctime
b.clevelctermcforcacstatedcperiodcofctime
c.cdecreasingctermcforcacstatedcperiodcofctime
d.crenewablecforcacstatedcperiodcofctimec-cCORRECTccANSWER-
levelctermcforcstatedcperiodcofctime:camountcofccoverageciscthecsamecascthecoriginalcfaceca
mount
Ancinsuredchascac$25,000cwholeclifecinsurancecpolicycwithc$6,000ccashcvaluecavailable.cUn
dercthecextendedctermcnonforfeiturecoption,cwhatciscthecamountcofcinsurancecavailablectocth
ecinsured.c
a.c$6,000
b.c$19,000
c.c$25,000
d.c$31,000c-cCORRECTccANSWER-$25,000
Howciscaccollateralcassignmentcusedcincaclifecinsuranceccontract
a.ctransferscpermanentcownershipcrightsctocaccreditor
b.cassignsccompletecownershipcrightsctocaccreditor
c.ctransferscspecificcownershipcrightsctocaccreditor
d.cassignscownershipcrightsctocthecprimarycbeneficiaryc-cCORRECTccANSWER-
transferscspecificcownershipcrightsctocaccreditor
Howciscthecinsuredcprotectedcifcacpayorcbenefitcriderciscattachedctoctheclifecinsurancecpolicy
a.cpremiumscarecwaivedcifcthecpayorcbecomescfinanciallycinsolvent
b.cpolicycloancwillcautomaticallyccovercthecpremiumscifcpayorcbecomescdisabledcorcdies
c.cpremiumcpaymentscarecwaivedcinctheceventcthecpremiumcpayorcdiescorcbecomescdisable
d
Options, and Riders 4 b Questions And
Answers
Aclifecinsurancecpolicycownercwouldclikecacdividendcoptioncthatcresultscincaclimitedccurrentco
utlaycofcfunds.cWhichcdividendcoptioncwouldcbecchosen
a.cpaid-upcadditions
b.caccumulationcofcinterest
c.c1-yearcterm
d.creductioncofcpremiumcpaymentc-cCORRECTccANSWER-reductioncofcpremiumcpayment
Aclifecinsurancecpolicycprovisioncthatchascthecabilityctocreducecthecdeathcbenefitcisccalledcthe
a.cacceleratedc(living)cbenefit
b.cinsuringcclause
c.cpayorcbenefit
d.cspendthriftcclausec-cCORRECTccANSWER-acceleratedc(living)cbenefit
Aclifecinsurancecpolicycthatccontainscancacceleratedc(living)cbenefitcridercwillcprovidecfundscif
cthec
a.cinsuredciscexpectedctocbecconfinedctocacnursingchomecforclife
b.cinsuredcrecentlychadcacminorcheartcattack
c.cinsuredchasclostcusecofconecarm
d.cinsuredcischavingcdirecfinancialcproblemsc-cCORRECTccANSWER-
insuredciscexpectedctocbecconfinedctocacnursingchomecforclife
Aclifecinsurancecpolicycthatcincludescacreturncofcpremiumcridercwillcpaycthecbeneficiarychowc
muchcuponcthecinsured'scdeath
a.ctotalcpremiumscpaidcpluscthecpolicycfacecamount
b.cfacecamountcpluscinterestcaccrued
c.cinterestcaccruedcplusctotalcpremiumscpaid
d.cfacecamountcminuscanycoutstandingcloancbalancesc-cCORRECTccANSWER-
totalcpremiumscpaidcpluscthecpolicycfacecamount
Aclifecinsurancecpolicy'scwaivercofcpremiumcriderchascthecabilityctoc
, a.cwaivecthecpremiumcpaymentscinctheceventcthecinsuredcbecomescfinanciallycinsolvent
b.crelievecthecinsuredcofcpremiumcpaymentscfollowingcancinitialcwaitingcperiodcaftercthecinsu
redcbecomesctotallycdisabled
c.cprovidecacpolicycloanctoccovercthecpremiumcpaymentscinctheceventcthecinsuredcbecomesct
otallycdisabled
d.cwaivecthecpremiumsconcthiscpolicycascwellcascanycothercinsurancecpoliciescbelongingctoct
hecinsuredcintcheceventcofctotalcdisabilityc-cCORRECTccANSWER-
relievecthecinsuredcofcpremiumcpaymentscfollowingcancinitialcwaitingcperiodcaftercthecinsure
dcbecomesctotallycdisabled
Acpolicycownerchascaclifecinsurancecpolicy,cwherecshechadclistedchercageconcthecapplicationc
asc5cyearscyoungercthanchercactualcage.cIfchecdiescandcthecinsurercdiscoverscthecmisstatem
entcofcage,chowcmuchcwillcthecinsurancecpolicycpay?
a.cnothing
b.cmorecthancthecfacecamount
c.clesscthancthecfacecamount
d.cfullcfacecamountc-cCORRECTccANSWER-lesscthancthecfacecamount
Aftercthecextendedctermclifecnonforfeiturecoptionciscchosen,cthecavailablecinsurancecwillcbec
a.cincreasingctermcforcacstatedcperiodcofctime
b.clevelctermcforcacstatedcperiodcofctime
c.cdecreasingctermcforcacstatedcperiodcofctime
d.crenewablecforcacstatedcperiodcofctimec-cCORRECTccANSWER-
levelctermcforcstatedcperiodcofctime:camountcofccoverageciscthecsamecascthecoriginalcfaceca
mount
Ancinsuredchascac$25,000cwholeclifecinsurancecpolicycwithc$6,000ccashcvaluecavailable.cUn
dercthecextendedctermcnonforfeiturecoption,cwhatciscthecamountcofcinsurancecavailablectocth
ecinsured.c
a.c$6,000
b.c$19,000
c.c$25,000
d.c$31,000c-cCORRECTccANSWER-$25,000
Howciscaccollateralcassignmentcusedcincaclifecinsuranceccontract
a.ctransferscpermanentcownershipcrightsctocaccreditor
b.cassignsccompletecownershipcrightsctocaccreditor
c.ctransferscspecificcownershipcrightsctocaccreditor
d.cassignscownershipcrightsctocthecprimarycbeneficiaryc-cCORRECTccANSWER-
transferscspecificcownershipcrightsctocaccreditor
Howciscthecinsuredcprotectedcifcacpayorcbenefitcriderciscattachedctoctheclifecinsurancecpolicy
a.cpremiumscarecwaivedcifcthecpayorcbecomescfinanciallycinsolvent
b.cpolicycloancwillcautomaticallyccovercthecpremiumscifcpayorcbecomescdisabledcorcdies
c.cpremiumcpaymentscarecwaivedcinctheceventcthecpremiumcpayorcdiescorcbecomescdisable
d
