Life Policy, Riders and Options...Q1

Which provision of a life insurance policy states that the application is part of the contract?

• Insuring clause

• Ownership

• Entire contract

• Assignment

Which of the following best describes fixed-period settlement option?

• Only the principal amount will be paid out within a specified period of time.

• The death benefit must be paid out in a lump sum within a certain time period.

• Income is guaranteed for the life of the beneficiary.

• Both the principal and interest will be liquidated over a selected period of time.

All of the following are dividend options EXCEPT

• Paid-up additions.

• Fixed-period installments

• Accumulated at interest

• Reduction of premium

Which nonforfeiture option has the highest amount of insurance protection?

• Conversion

• Decreasing Term

• Reduced paid-up

• Extended Term

An insured committed suicide one year after his life insurance policy was issued. The insurer will

• Pay the policy's cash value.

• Pay the full death benefit to the beneficiary.

• Pay nothing.

• Refund the premiums paid.

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

• One-year term

• Reduction of premium

• Accumulation at interest

• Paid-up option

Under an extended term nonforfeiture option, the policy cash value is converted to

• A higher face amount than the whole life policy.

• The same face amount as in the whole life policy.

• The face amount equal to the cash value.

• A lower face amount than the whole life policy.

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

• Cash option

• Reduction of premium

• Annual dividend Provision

• Accumulation at interest

If a life policy allows a policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

• Guaranteed insurability rider.

• Paid-up additions option.

• Cost of living provision.

• Nonforfeiture Option.

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

• Amount of interest

• Size of each installment

• Predetermined length of time stated in the contract

• Length of income period