NWM Chapter 4 (Pt. 2) Review
Exam Study Guide
What could be the potential result of taking out a cash value loan under a life insurance
policy? - Answer Reduces the amount receivable upon surrender of the contract
In what way is a life insurance policy affected by an accelerated benefit payment? -
Answer Decreases the death benefit
Which life insurance policy would be eligible to include an automatic premium loan
provision? - Answer Whole life
A life insurance policy that includes a return of premium rider will pay the beneficiary
how much upon the insured's death? - Answer Total premiums paid plus the policy face
amount
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - Answer Long-term
care benefit rider
A life insurance policy provision that has the ability to reduce the death benefit is called
the - Answer accelerated (living) benefit
Which of the following is true regarding a person receiving a waiver of premium benefit?
- Answer The insured must be disabled for a period of time
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 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
The automatic premium loan provision can be accurately described as a - Answer
provision that provides a policy loan to pay any premiums by the end of the grace period
What effect can a long-term care benefit rider have on a life insurance policy? - Answer
Reduced death benefit
What is payable to the policyowner if a whole life policy is surrendered prior to its
maturity date? - Answer The cash value
Which of the following is NOT subject to the promise to pay in an insuring clause? -
Answer How the premium is calculated
A life insurance policy's waiver of premium rider has the ability to - Answer relieve the
Exam Study Guide
What could be the potential result of taking out a cash value loan under a life insurance
policy? - Answer Reduces the amount receivable upon surrender of the contract
In what way is a life insurance policy affected by an accelerated benefit payment? -
Answer Decreases the death benefit
Which life insurance policy would be eligible to include an automatic premium loan
provision? - Answer Whole life
A life insurance policy that includes a return of premium rider will pay the beneficiary
how much upon the insured's death? - Answer Total premiums paid plus the policy face
amount
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - Answer Long-term
care benefit rider
A life insurance policy provision that has the ability to reduce the death benefit is called
the - Answer accelerated (living) benefit
Which of the following is true regarding a person receiving a waiver of premium benefit?
- Answer The insured must be disabled for a period of time
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 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
The automatic premium loan provision can be accurately described as a - Answer
provision that provides a policy loan to pay any premiums by the end of the grace period
What effect can a long-term care benefit rider have on a life insurance policy? - Answer
Reduced death benefit
What is payable to the policyowner if a whole life policy is surrendered prior to its
maturity date? - Answer The cash value
Which of the following is NOT subject to the promise to pay in an insuring clause? -
Answer How the premium is calculated
A life insurance policy's waiver of premium rider has the ability to - Answer relieve the
