Module 3: Riders Flashcards
- A term rider is
A. a term policy with a waiver of premium
B. another name for a convertible term policy
C. a renewable term policy
D. a term insurance added to a permanent plan
D
- An optional rider which can be attached to a policy stopping
further premium payments in the event of disability is called
A. policyholder protection clause
B. accidental death and dismemberment
C. waiver of premium
D. total disability monthly income
C
- For the waiver of premium to be effective,
A. disability must be total
B. disability must be permanent
C. both a & b
D. either a or b
C
- If a policy with the accidental death rider becomes paid-up,
A. the accidental death rider ceases
B. the face amount of the policy is reduced
C. premiums on the basic policy stop but the rider premium continues
D. none of the above
A
- Disability benefits are not paid
A. for self-inflicted injuries
B. if there is a loan against the policy
C. if all the policy dividends have been withdrawn
D. if disability resulted from sickness only
A
- Mr. Pedro Cruz became paralyzed as a result of jumping out of
the window in an attempt to commit suicide. Under the usual
provisions of a disability income policy, he would be entitled to
A. receive the total disability income benefit and the waiver of
premiums
B. receive partial disability benefits
C. be granted the waiver of premiums
D. receive neither disability income nor waiver of premiums
D
- A person wanting a greater coverage for the least amount of
premium has an option of attaching what rider in his
permanent life policy?
A. a waiver of premium
B. term insurance rider
C. guaranteed insurability rider
D. accidental death rider
B
- One supplementary benefit offered is a payor’s benefit which
is intended to
A. provide for the return of premiums to an adult payor in the event that
a minor insured dies
B. provide a waiver of premium benefit in the event of death or disability
of the person paying the premiums
C. allow the insurance company to pay the policy’s proceeds to the person
who seems equitably entitled to the proceeds
D. assure that the adult payor will retain a vested interest in the policy
when the insured reaches the age of majority
B
- If an insured is disabled and his life insurance policy is being
continued in force through the waiver of premium, the
dividends of the policy would
A. cease
B. continue at reduced rate
C. continue as if the owner is paying the premium
D. continue but they would be applied toward premium being waived
C
- A policy with a minor as the proposed insured is called
A. rated policy
B. juvenile policy
C. regular policy
D. substandard policy
B
