Idaho Flashcards
Settlement: Life Income Joint and Survivor
Income for two or more as long as they live
After first dies, reduced payment for the second person
Settlement: Interest Only
Insurance company keeps policy proceeds
Pays interest on proceeds to the recipient at regular intervals
Accelerated Benefit/ Living Needs Rider
Early payment of part of death benefits
Insured is diagnosed will terminal illness
How long does the insured have to live in order to qualify for accelerated benefit/ living needs rider?
2 years
How long must the insured be notified of a policy lapse for overdrawing their policy loan amount?
30 day notice
Automatic Premium Loan
Prevents unintentional lapse of policy due to nonpayment
Interest charged
Under the Automatic Premium Loan Rider, the insurer can defer payment of all loans up to six months EXCEPT
a loan to pay a premium which are honored immediately.
If both the insured and the beneficiary die in the same accident but have the Common Disaster Rider and it’s impossible to tell who died first, what is assumed?
Primary beneficiary died first
Proceeds go directly to contingent beneficiary or insured’s estate.
Within how long of an accident must the insured die to receive double indemnity for the Accidental Death Rider?
90 days
Other term for cash payment settlement option
Lump sum
Are nonforfeiture values required to be included in the policy?
Yes, by state laws
What’s the benefit of choosing extended term as a nonforfeiture option?
It has the highest coverage
What is a Modified Endowment Contract?
When a policy fails the 7-pay test
When is a new 7-pay test required?
When there is a material change to a policy
Who initials a change on a mistake on an application?
The prospective insured
