Life Policy Provisions, Riders, Options, and Exclusions Flashcards
When would a contingent beneficiary receive a death benefit?
When the primary beneficiary predeceases the insured
The automatic premium loan provision is activated at the end of the—-
Grace Period
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination.
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
Common Disaster Clause
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time, is known as the—
Incontestability Clause
Which rider allows for the premium payments to be relieved for the insured in case the policyowner dies or becomes disabled?
Payor Benefit
Which provision allows the policyowner to change beneficiaries?
Owner Rights
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all premiums paid. Which rider is attached to the policy?
Return of premium
Joe didn’t list a beneficiary on his life insurance policy. When he died it became part of his estate. What are the tax consequences?
Fully taxable
Which of the following riders is often used in business life insurance policies when the policyowner needs to change the insured?
Substitute insured rider
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each installment
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called
Consideration
Under which non-forfeiture option does the company pay the surrender value and have no further obligations to the policyowner?
Cash Surrender
Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows of temporary insurance to cover other family members?
Term Rider
Which nonforfeiture option has the highest amount of coverage?
Extender Term
