3.Snapshots.Life Policy Provisions, Options & Flashcards

1
Q
  1. What constitutes the entire contract?
A

provision stipulates that the policy and a copy of the application, along with
any riders or amendments, constitute the entire contract

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2
Q
  1. What is the free-look period, and when does it begin?
A

The free-look period starts when
the policyowner receives the policy (policy delivery)

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3
Q
  1. What is the difference between absolute and collateral assignment?
A
  • Absolute Assignment — involves transferring all rights of ownership to another person or
    entity. This is a permanent and total transfer of all the policy rights. The new policyowner
    does not need to have an insurable interest in the insured.
  • Collateral Assignment — involves a transfer of partial rights to another person. It is
    usually done in order to secure a loan or some other transaction. A collateral assignment is a
    partial and temporary assignment of some of the policy rights. Once the debt or loan is
    repaid, the assigned rights are returned to the policyowner.
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4
Q
  1. What is the purpose of a grace period?
A

period of time after the premium due date that the policyowner has to pay the
premium before the policy lapses (usually 30 or 31 days, or one month)

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5
Q
  1. What is the difference between a revocable and irrevocable beneficiary?
A
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6
Q
  1. What happens to an unpaid policy loan at insured’s death?
A
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7
Q
  1. What is the purpose of the Automatic Premium Loan provision?
A
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8
Q
  1. Which riders increase the amount of the death benefit?
A
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9
Q
  1. Which rider allows the early payment of a portion of the death benefit to the insured?
A
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10
Q
  1. What are the 3 nonforfeiture options in life insurance policies?
A
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11
Q
  1. Which nonforfeiture option is automatically selected if the policyowner has not made a
    selection?
A
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12
Q
  1. Which dividend option increases the death benefit?
A
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13
Q
  1. What settlement options are available in life insurance policies?
A
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