Section 4 - Life Insurance Policies Flashcards
Who normally pays the premiums for group credit life insurance?
The borrower
True or false: additional premiums may be required under certain conditions in a single premium life insurance policy
False
A material change in a modified endowment contract (MEC) results in
The seven pay test, adjusted for cash value, applies again
When would evidence of insurability be required for a person already covered with a variable universal life policy?
When the death benefit is increased
Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?
Incontestable clause
A life insurance policy that includes a return of premium writer will pay the beneficiary how much upon the insured’s death?
Total premiums paid plus the policy face amount
Which of the following is not guaranteed in a whole life policy?
Settlement options
Non-forfeiture options
Dividend scale
Policy loan values
Dividend scale
When a lapsed policies, premium has been paid current, it has the potential of being
Reinstated
The absolute assignment of a life insurance policy results in
All incidents of ownership transferred to the assignee
What happens when a policy owner borrows against the cash value of their insurance policy?
The policy proceeds would be reduced by the outstanding loan balance
Which of the following is not subject to the promised to pay and insurance clause?
How the premium is calculated
Policy provisions
Policy conditions
Policy exclusions
How the premium is calculated
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends…
… equal the net single premium for the same face amount at the insured’s attained age.
A life insurance policy provision that has the ability to reduce. The death benefit is called the…
… accelerated (living) benefit
What is the name of the writer that provides an additional purchase option in a life insurance policy?
Guaranteed insurability rider
A policy owner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has a cash value
