CH3 Flashcards
Which of the following is true about the mandatory free look in a Life Insurance policy?
A- It commences when the application is signed.
B- It applies only to term life insurance policies.
C- It is optional on all life insurance policies.
D- It commences when the policyisdelivered.
D- It commences when the policyisdelivered.
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
A- Accumulation at interest
B- Paid-up option
C- Dividend accumulation option
D- Paid-upadditions
B- Paid-up option
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy’s cash value, which is currently $20,000. What would be the face amount of the new term policy?
A- $20,000
B- $25,000
C- The face amount will be determined by the insurer.
D- $50,000
D- $50,000
When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called
A- irrevocable designation.
B- Stirpes designation.
C- Class designation.
D- Revocabledesignation.
C- Class designation.
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
A- Joint life.
B- Joint and survivor.
C- Fixed period.
D- Fixedamount.
B- Joint and survivor.
What is the advantage of reinstating a policy instead of applying for a new one?
A- The original age is used for premium determination.
B- Proof of insurability is not required.
C- The cash values have gained interest while the policy was lapsed.
D- The face amount canbeincreased
A- The original age is used for premium determination.
