Podcast
Questions and Answers
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
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?
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?
A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations except:
A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations except:
Which of the following is considered to be an alternative to a life settlement?
Which of the following is considered to be an alternative to a life settlement?
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All of the following are considered to be non-forfeiture options available to policy owners EXCEPT:
All of the following are considered to be non-forfeiture options available to policy owners EXCEPT:
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A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a
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What would limit a company's liability to provide insurance coverage?
What would limit a company's liability to provide insurance coverage?
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Which of the following is NOT part of an insurance contract?
Which of the following is NOT part of an insurance contract?
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A whole life policy option where extended term insurance is selected is called a
A whole life policy option where extended term insurance is selected is called a
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A whole life insurance policy accumulates cash value that becomes
A whole life insurance policy accumulates cash value that becomes
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An endorsement found in an insurance plan which modifies the provisions of the policy is called
An endorsement found in an insurance plan which modifies the provisions of the policy is called
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A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability is called
A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability is called
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The two major actions required for a policyholder to comply with the Reinstatement Clause are
The two major actions required for a policyholder to comply with the Reinstatement Clause are
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What does the Group life underwriting risk selection process help protect insurance companies from?
What does the Group life underwriting risk selection process help protect insurance companies from?
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An employee under a group insurance policy has the right to name a beneficiary and the right to
An employee under a group insurance policy has the right to name a beneficiary and the right to
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The conversion privilege under a group life plan allows an employee to convert to a
The conversion privilege under a group life plan allows an employee to convert to a
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All of the following are characteristics of a Group life insurance plan except
All of the following are characteristics of a Group life insurance plan except
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How does life insurance create an immediate estate?
How does life insurance create an immediate estate?
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Study Notes
Life Insurance Policy Options
- A 20-pay life policy with a paid-up dividend option allows early payment using policy dividends.
- Nonforfeiture options for policyholders include Cash Surrender and Extended Term Insurance, but not Reduction of Premium.
- A whole life policy may select extended term insurance as a nonforfeiture option.
Application Errors and Incontestability
- Common application errors not covered by the incontestable clause include age, marital status, address, and income.
Policy Limitations and Provisions
- Coverage limitations exist for situations such as suicide, war, and as a pilot of a personal airplane, but fare-paying passengers are typically covered.
- Exclusions in a policy indicate conditions that limit the insurer's responsibility.
Riders and Benefits
- Accelerated death benefit rider serves as an alternative to life settlements, allowing early access to benefits.
- A payor rider ensures premiums are covered for juvenile policies until adulthood.
- Guaranteed insurability rider permits individuals to purchase insurance regardless of insurability as they age.
Reinstatement and Group Insurance
- Reinstatement of a policy requires evidence of insurability and payment of past due premiums.
- The Group life underwriting risk selection process mitigates the risk of adverse selection.
- Employees can convert group insurance to individual policies upon employment termination, retaining certain rights.
Insurance Contract Components
- Certificates of Authority are not part of an insurance contract, unlike policy, application, and riders.
- Riders modify the terms of an insurance policy, adding unique provisions to coverage.
Cash Value and Loans
- Whole life policies accumulate cash value which can serve as loan value for the insured.
Group Insurance Characteristics
- Group life insurance includes elements like group underwriting, a master contract, and a probationary period, with individual underwriting being the exception.
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Description
Test your knowledge on life insurance policies, including various options, limitations, and riders. This quiz covers essential concepts like the 20-pay life policy, nonforfeiture options, and common application errors. Dive into the details of coverage limitations and benefits for policyholders.
