6-Life Insurance Policy Provisions, Options and Riders
About this set
Created by:
Ashley127 on November 13, 2010
Subjects:
life health & variable annuities -florida
Description:
Chapter 6 of the Florida Study Manual
Classes:
Log in to favorite or report as inappropriate.
Order by
18 terms
Terms | Definitions |
|---|---|
 Insuring Clause | Sets forth the company's basic promise to pay benefits upon the insured's death. |
| Consideration Clause | Specifies the amount and frequency of premium payments that the policy owners must make to keep the insurance in force. |
| List 3 situations in which the Incontestable clause does NOT apply | Impersonation, No Insurable Interest, Intent to murder. |
| Assignment provision | sets forth the procedure necessary for ownership transfer. |
| Accelerated Benefits Provision | Provide for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury. |
| Automatic Premium Loan Provision | Authorizes the insurer to withdraw from the policy's cash value the amount of premium due if the premium has not been paid by the end of the grace period. |
| What are the 3 non forfeiture Options? | Cash surrender option, Reduced Paid Up Option, Extended Term Option |
| What are the 5 Dividend Options | 1. Take Dividends in Cash 2. Apply dividends against premium payments 3. Allow dividends to accumulate at interest 4. Use dividends to buy paid-up additions 5. Use dividends to purchase one year term insurance |
| What is the Guaranteed Insurability Rider | It permits the insured at specified intervals in the future to buy specified amounts of additional insurance without evidence of insurability. |
| Policy Loan Provision | Policy owners may borrow money from the cash values of their policies if they wish to do so. |
| Delayed Payment Provision | A protective measure for companies should an economic crisis arise allowing insurers to postpone payment of cash surrender values for up to six months. |
| Waiver of Premium Rider | Prevents a policy from lapsing for non payment of premiums while the insured is disabled and unable to work. |
| Waiting Period | Period of time usually 90 days to 6 months in which an insured generally must be seriously disabled for the specified length of time. |
| Payor Provision or Rider | Provides a waiver of premiums if the adult premium payor should die or become disabled. |
| Accidental Death Benefit Rider | Provides an additional amount of insurance, usually equal to the face amount of the base policy if death occurs under stated conditions. (Indemnity) |
| Under a Accidental Death Benefit Rider, how many days after an accident must death occur? | 90 Days |
| Return of Premium Rider | In the event of the death of the insured within a specified period of time, the policy will pay, in addition to the face amount of an amount equal to the sum of all premiums paid to date. |
| Cost of Living rider | Provide increases in the amount of insurance protection without requiring the insured to provide evidence of insurability. The amt of increase is tied to the Consumer Price Index. |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.