Questions and Answers
The provision which states that both the policy and a copy of the application form the contract between the policy owner and the insurer is called the?
Entire Contract
According to the Entire Contract Provision, a policy must contain?
A copy of the original application for insurance
The sole beneficiary of a life insurance policy dies before the insured. If the policy owner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to?
The insured's estate
Which nonforfeiture option provides coverage for the longest period of time?
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When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid - which rider is attached to the policy?
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An insured has chosen join and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
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What is the advantage of reinstating a policy instead of applying for a new one?
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J applied for a life insurance policy on Jan. 10. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?
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It is true that the guaranteed insurability rider is available to all insured with no additional premium.
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Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
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Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
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Nonforfeiture values guarantee which of the following for the policy owner?
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A business owner decided to use her $250k life insurance policy to secure the loan. Which provision makes this possible?
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The Waiver of Cost of Insurance rider is found in what type of insurance?
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A rider attached to a life insurance policy that provides coverage on the insured's family members is called the?
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An insured purchased a life insurance policy on his life naming his wife as the primary beneficiary, and his daughter as the contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
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The two types of assignments are:
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The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. What would the policy beneficiary receive?
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Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
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The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the:
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Z falls from the roof of his house while fixing it and damages his spinal column enough to render him disabled for a year. His insurance policy carries a Disability Income Benefit rider. What benefits will Z receive?
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An insured has a continuous premium whole life policy. She would like to use the dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
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Study Notes
Life Insurance Provisions and Riders
- Entire Contract Provision: Combines the insurance policy and application as the binding contract.
- Policy Content Requirement: Must include a copy of the original application for insurance under the Entire Contract Provision.
Beneficiary Designations
- Death of Sole Beneficiary: If the sole beneficiary dies before the insured, benefits go to the insured's estate unless the beneficiary designation is changed.
Nonforfeiture Options
- Reduced Paid-Up Option: Offers coverage for the longest duration among nonforfeiture options.
Riders and Settlement Options
- Return of Premium Rider: Provides death benefits plus a refund of all premiums paid upon the insured's death.
- Joint and 2/3 Survivor Settlement: Surviving beneficiary receives 2/3 of the original benefit after the death of one beneficiary.
Policy Reinstatement
- Advantage of Reinstatement: Maintains the original age for premium calculations, providing potentially lower premiums.
Policy Cancellation
- Refund Period: A policyholder must return the policy within 10 days of delivery to receive a full premium refund.
Insurability Features
- Guaranteed Insurability Rider: Contrary to common belief, it is not universally available without additional premiums.
Premium Payment Protections
- Automatic Premium Loan: Protects against unintentional policy lapses due to missed premium payments.
- Payor Benefit: Allows premium relief for minor insureds if their parents become disabled or deceased.
Nonforfeiture Values
- Protection of Cash Value: Guarantees that a policy owner will not lose the accumulated cash value.
Loan Security
- Collateral Assignment: Enables using a life insurance policy as collateral for loans.
Riders Specifics
- Waiver of Cost of Insurance Rider: Applicable in Universal Life policies.
- Other-Insured Rider: Provides coverage for family members of the insured.
Beneficiary Conditions
- Contingent Beneficiary: The daughter can collect benefits if the primary beneficiary (wife) predeceases the insured.
Types of Assignments
- Assignment Types: Includes Absolute Assignment and Collateral Assignment.
Accidental Death Benefits
- Triple Indemnity Rider: If the insured's death is accidental but deemed their fault, the beneficiary receives the standard benefit, not the additional triple indemnity.
Settlement Options
- Fixed-Amount Settlement: The length of benefits correlates with the size of each installment chosen by the beneficiary.
Death Claim Policy Clauses
- Incontestability Clause: Prevents denial of claims after a specified period, ensuring claims are honored if policy conditions are met.
Disability Income Benefits
- Disability Income Benefit Rider: Provides monthly income and waives premium payments if the insured is rendered disabled.
Dividend Options for Policyholders
- Paid-Up Option: Allows an insured to use dividends to pay off a whole life policy faster than originally scheduled.
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Description
Test your knowledge on Life Insurance Policy Provisions, Riders, and Options. This quiz covers important terms and definitions related to contracts in life insurance. Perfect for students or professionals looking to refresh their understanding of life insurance fundamentals.
