Xcel solutions chapter 3 - policy provisions Questions and Answers 100% Pass

Xcel solutions chapter 3 - policy provisions Questions and Answers 100% Pass A potential client, age 40, would like to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? - Correct Answer ️️ -20-pay life accumulates cash value faster than straight life D owns a whole life policy that was purchased 10 years ago. If the premium payment suddenly stop and D takes no additional action, which nonforfeiture option will be insurer likely proceed with? - Correct Answer ️️ -Extended term D is the policy owner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D Remarries, transferring ownership of his policy to his new wife. If D Dies without making any further changes, I home will the policy proceeds to say to? - Correct Answer ️️ -Ex-Wife Which of these NOT an example nonforfeiture option? - Correct Answer ️️ -Life income Which of these life insurance riders allows to applicant to have access coverage - Correct Answer ️️ -Term rider Typically a life insurance death benefit is paid by lump sum payment. A ______ option is a method of distributing a life insurance policies death benefit other than Buy a lump sum payment - Correct Answer ️️ -Settlement The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called - Correct Answer ️️ -Accidental death and dismemberment rider The incontestable clause allows the insurer to - Correct Answer ️️ -Contest a claim during the contestable period S has a whole life policy with the premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made - Correct Answer ️️ -Automatic policy loan Which of the following is an example of a nonforfeiture option - Correct Answer ️️ - Reduced paid up option The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon a insureds death is called - Correct Answer ️️ - Insuring agreement P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? - Correct Answer ️️ -Accidental death and dismemberment clause When is the face amount of a whole life policy paid - Correct Answer ️️ -When the insured dies or at the policies maturity date which ever happens first L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the misstatement of age provision, the insurer will - Correct Answer ️️ -Adjust the death benefit to a reduced amount When an insurer issues a policy that refuses to cover certain risk, this is referred to as a - Correct Answer ️️ -Exclusion M had a annual life insurance premium payment due January 1 she died January 10 without making the premium payment what action will the insurer take - Correct Answer ️️ -Pay face amount minus the past due premium A cost of living rider gives the insured - Correct Answer ️️ -Additional death benefits Who's life is covered on a life insurance policy that contains a payer benefit clause - Correct Answer ️️ -Child What does the insuring agreement in a Life insurance contract establish - Correct Answer ️️ -An insurer's basic promise How do a life insurance companies handle cases where the insured commits suicide within the contract's stated contestable period? - Correct Answer ️️ -Claims are denied under the suicide clause of the policy N is covered by term life policy and does not make the required premium payment which was due August 1. N die September 15 what action will the insurer take? - Correct Answer ️️ -Claim will be denied S would like to use dividends from her life insurance policy to purchase paid up additions. All of these would be factors that determine how much coverage can be purchased except - Correct Answer ️️ -Beneficiary's age Additional coverage can be added to a whole life policy by adding a - Correct Answer ️️ -Decreasing term rider The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called - Correct Answer ️️ -Reinstatement Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disabled? - Correct Answer ️️ -Payor claus