Don’t Knows Pt II Flashcards
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life income
The incontestable clause allows an insurer to:
Contest a claim during the contestable period
How are surrender charges deducted in a life policy with a rear end loaded provision?
Deducted when the policy is discontinued
P is the insured on a participating life policy. Which statement is true if P’s premiums are waived due to a disability?
P will still receive declared dividends
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
How do life insurance companies handle cases where the insured commits suicide within the contract’s stated contestable period?
Claims are denied under the suicide clause of the policy
K owns a whole life policy. If K wants an increasing death benefit to protect against inflation, which dividend option, should she choose?
Paid-up additional insurance
The free look provision begins:
Upon receipt of the policy by the policy owner
The purpose of the ____________ period clause is to avoid an unintentional lapse of a life insurance policy.
Grace
The advantage of reinstating an original life policy is
The premiums are based on a younger age
Which of these are not an example of a non-forfeiture option?
Life income
The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n):
AD&D rider
Which of these life insurance riders allows the applicant to have access coverage?
Term rider
What provision in a life insurance policy states that the application is considered part of the contract?
Entire contract provision
When does a guaranteed insurability rider allow the insured to buy additional coverage?
At future dates specified in the contract with no evidence of insurability required
