Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

SC License > Life Insurance Policy Provisions, Options & Rider > Flashcards

Life Insurance Policy Provisions, Options & Rider Flashcards

11% Chapter 5

1
Q

Who can make changes in a life insurance policy?

A

Mutual consent of owner and insurance executive officer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When can the insurer adjust death benefits to the beneficiary?

A

Never

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What makes up the entire contract?

A

The insurance policy and completed signed application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When does the free look period begin?

A

When the policy is delivered to the owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How long is a free look perion for a new contract?

A

Not less than 10 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How long is the free look period on a replacement contract?

A

Not less than 20 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How long is the free look period on a direct response policy?

A

Not less than 31 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When does a premium have to be paid?

A

In advance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How long is the grace period in South Carolina?

A

No less than 31 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Does a grace period allow?

A

The payment to be received and prevent the policy from lapsing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the reinstatement period on a lapsed policy?

A

3 yrs with
Written request
Proof of insurability
Payment of back premiums are interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the incontestability period?

A

2 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What mistatements can lead to an adjustment of the death benefits after the incontestability periods?

A

Mistakement of age or gender

The insurer can adjust the benefits up or down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the common policy exclusions?

A

War
Aviation
Hazardous hobbies and occupations
Suicide provision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

When does the free look perion begin and how long must it be?

A

When the policy is delivered

10, 21 or 31 days depending on delivery/contract type

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What kind of beneficiary designation can’t be changed without their written permission?

A

Irrevocable beneficiary

17
Q

What happens if the insured and primary benefit both die in the same accident?

A

Common disaster clause
The primary benefits Sherry always dies 1st
SC 120 hour (5 day) survival period

18
Q

Which life insurance settlement option will result in no income taxes due?

A

Lump sum or cash pay out

19
Q

What is the automatic non forfeiture option?

A

The policy owner is guaranteed access to cash

Cash surrender

20
Q

Do universal life policies contain a non forfeiture option?

A

No

21
Q

What does the automatic premium loan provision do?

A

Prevent the policy for lapsing incase the policy holder forgets to pay the premium

22
Q

Which dividen option is automatic if none is chosen

A

Paid up additions

23
Q

Do universal life policies have dividends?

A

No

24
Q

What are the dividend options?

A 
Receive dividend in cash 
Reduce the premium
Buy one year term 
Buy paid up additions -default 
Accumulate at interest - taxable
25
Q

Are dividends guaranteed and taxable?

A

No dividends are not guaranteed

Dividends are generally not taxed

26
Q

Which non forfeiture option continues at the same face value as the original policy?

A

Extended term insurance option

27
Q

Which policy loan option cannot be deferred for 6 months?

A

Automatic premium loan provision

28
Q

How does the waiver of premium waiver differ from the waiver of cost of insurance writer?

A

The waver of premium pays the monthly premium if the Insured is disabled.
The cost of insurance rider is for UL policies and only pays the cost of insurance and expenses deducted from the policy

29
Q

How does a partial surrender differ from a policy loan?

A

A policy loan can be paid back. A partial surrender is a payout.

30
Q

4 Beneficiary options?

A

Individuals
Class designations
Per stripes
Per capita

31
Q

What is a per capita beneficiary?

A

Death benefit equally divided amongst class members

32
Q

What is Per Stirpes?

A

Cascading beneficiaries

33
Q

Which rider allows the owner to add another person to the policy with term insurance?

A

Spouse/Other insured term

Ends at 65

34
Q

Which rider allows the owner to purchase additional coverage with no medical exams and how often?

A

Guaranteed insurability rider

35
Q

When does joint and Survivor life income payout?

A

Payments are made until 2nd payee or survivor dies

36
Q

What are the 3 lifetime income options?

A

Single (straight) life - payments cease at death
Life income with period certain - payments for entire period
Joint and survivor life income - til survivor dies

SC License (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions