XCEL CHAPTER 4 LIFE INSURANCE
POLICIES - PROVISIONS, OPTIONS
AND RIDERS QUESTIONS AND
ANSWERS
When does the insured stop making payments under a thirty-payment whole life
policy? - ANSWER-At the time of death or 30 years after the policy's inception,
whichever comes first
Which of these life insurance policies does NOT contain a cash value provision? -
ANSWER-Decreasing term life
How is the insured protected if a payor benefit rider is attached to the life insurance
policy? - ANSWER-Premium payments are waived in the event the premium payor
dies or becomes disabled
Which of these statements regarding the extended term insurance nonforfeiture
option in a life policy is accurate? - ANSWER-The premium to purchase the
coverage comes from the policy's cash value
How is a collateral assignment used in a life insurance contract? - ANSWER-
Transfers specific ownership rights to a creditor
How long can an insurer defer paying the cash value of a surrendered life insurance
policy? - ANSWER-6 months
Which of the followings is NOT subject to the promise to pay in an insuring clause? -
ANSWER-How the premium is calculated
Scott has a life insurance policy in which dividends are left with the insurance
company. This particular policy may be paid up when the cash value plus
accumulated dividends... - ANSWER-Equal the net single premium for the same face
amount at the insured's attained age
A life insurance policy that contains an accelerated (living) benefit rider will provide
funds if the... - ANSWER-Insured is expected to be confined to a nursing home for
life
In the event of premium default, which life insurance provision will use the cash
value to keep the policy in force? - ANSWER-Automatic premium loan
Which of these would NOT be a valid reason to add the waiver of premium rider to a
life insurance policy? - ANSWER-It allows a policy loan to cover premium payments
if the policyowner becomes totally disabled
POLICIES - PROVISIONS, OPTIONS
AND RIDERS QUESTIONS AND
ANSWERS
When does the insured stop making payments under a thirty-payment whole life
policy? - ANSWER-At the time of death or 30 years after the policy's inception,
whichever comes first
Which of these life insurance policies does NOT contain a cash value provision? -
ANSWER-Decreasing term life
How is the insured protected if a payor benefit rider is attached to the life insurance
policy? - ANSWER-Premium payments are waived in the event the premium payor
dies or becomes disabled
Which of these statements regarding the extended term insurance nonforfeiture
option in a life policy is accurate? - ANSWER-The premium to purchase the
coverage comes from the policy's cash value
How is a collateral assignment used in a life insurance contract? - ANSWER-
Transfers specific ownership rights to a creditor
How long can an insurer defer paying the cash value of a surrendered life insurance
policy? - ANSWER-6 months
Which of the followings is NOT subject to the promise to pay in an insuring clause? -
ANSWER-How the premium is calculated
Scott has a life insurance policy in which dividends are left with the insurance
company. This particular policy may be paid up when the cash value plus
accumulated dividends... - ANSWER-Equal the net single premium for the same face
amount at the insured's attained age
A life insurance policy that contains an accelerated (living) benefit rider will provide
funds if the... - ANSWER-Insured is expected to be confined to a nursing home for
life
In the event of premium default, which life insurance provision will use the cash
value to keep the policy in force? - ANSWER-Automatic premium loan
Which of these would NOT be a valid reason to add the waiver of premium rider to a
life insurance policy? - ANSWER-It allows a policy loan to cover premium payments
if the policyowner becomes totally disabled
