11.2c

Question 1

Upon the death of an insured individual, the insurance contract requires the insurer to ______ listed in the policy. The insurer must pay the death benefit to the beneficiary upon proof of the insured’s death and usually occurs quite quickly. In addition, once the insured has died, any past creditors are restricted from ______, including cash value, from the beneficiary.

Answer 1

distribute the death benefit to the designated beneficiary

collecting any death benefit

Question 2

Under the ______, the policyowner simply receives a cash distribution as his or her return of premium from the mutual insurer.

Answer 2

Cash Dividend Option

Question 3

The Accumulation at Interest Option allows the policyowner to reinvest policy dividends ______.

Answer 3

back into the insurance company to continue to accumulate interest at a compounding rate

Question 4

The ______ allows a policyowner to purchase additional insurance using dividend returns; however, premiums are higher as a result of the increased age of the insured at the time of purchasing additional insurance.

Answer 4

Paid-up Additions Option

Question 5

The ______ uses dividend proceeds to reduce the next year’s premium payments. It helps lower the overall premiums for the following year, based on the amount of dividends issued.

Answer 5

Reduce Premium Dividend Option