Which of these is NOT considered to be a common life insurance nonforfeiture option?
life income annuity
All of these are valid options for what a policy owner may do with policy dividends EXCEPT
accumulate without interest
James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount.
The death benefit paid will be the premium would have purchased the correct age.
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies.
Payor benefit
Which of the is NOT considered to be a nonforfeiture option in a whole life insurance policy?
interest only
Loans obtained by a policy owner against cash value of a life insurance policy
would not be treated as taxable income
Which of these would limit a company's libaility to provide insurance coverage?
Exclusion
If an insured dies during the grace period with no premiums paid
the policy would be payable, minus the premium amount
All of these common exclusions to a life insurance policy EXCEPT
accidental death
What is an insurer required to do when faced with an error made under the Misstatement of Age provision?
Pay age-corrected benefits
All of these are standard exclusions found in a life insurance policy EXCEPT
disabillity
A life insurance policy normally contains a provision that restrict coverage in the event of death under all of the following situations EXCEPT
fare-paying passenger
An error made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply?
age
What is an insurance policy's grace period?
Period of time after the premium is due but the policy remains in force
What is the name of the provision which states that a copy of the application must be attached to the policy when issued?
Entire Contract
Which of these is considered to be a Living Benefit option in a life insurance policy?
Accelerated death benefit
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?
Results
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
provide evidence of insurability to the insurer
Of the following dividend options, which of these is taxable?
Accumulation at interest
A provision that allows a policy owner to withdraw a policy's cash value interest free is a(n)
partial surrender
All of the following riders can increase the death benefit amount EXCEPT
Waiver of Premium
Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE?
Net death benefit will be reduced if the loan is not repaid
All of the following are considered to be nonforfeiture options available to a policy owner EXCEPT
Reduction of Premium
Which of these would limit a company's liability to provide insurance coverage?
Exclusion
If an insured dies during the grace period with no premiums paid
the policy would be payable, minus the premium amount
All of these are common exclusions to a life insurance policy EXCEPT
accidental death
A life insurance policy owner does NOT have the right to
revoke an absolute assignment
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)
collateral assignment
An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period?
Grace period
Ownership of a life insurance policy may be temporarily transferred with a(n)
collateral assignment
An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply?
Age
A whole life insurance policy accumulates cash value that becomes
the policy loan value which the insured may borrow against
Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?
Incontestable clause
The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n)
accident
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
provide evidence of insurability to the insurer
Of the following dividend options, which of these is taxable?
Accumulation at interest
A provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n)
nonforfeiture provision
A provision that allows a policy owner to withdraw a policy's cash value interest free is a(n)
partial surrender
Which situation accurately describes a reduced paid-up nonforfeiture option?
Policy has a decreased face amount