Upgrade to remove ads
Life Policy Provisions, Riders and Options - Insurance
Terms in this set (18)
Define the characteristics of an insurance contract and are fairly universal from one policy to the next.
are added to a policy to modify provisions that already exist
offer insurers and insureds ways to invest or distribute a sum of money available in a life policy
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called:
Joint and survivor. A joint and survivor option pays while either beneficiary is still living.
Which nonforfeiture option provides coverage for the longest period of time?
The automatic premium loan provision is activated at the end of the
Which of the following statements is TRUE concerning Accidental Death Rider?
It will pay double or triple the face amount
If a settlement option is not chosen by the beneficiary or policyowner, which option will be used?
All of the following are true regarding the guaranteed insurability rider EXCEPT:
This rider is available to all insureds with no additional premium.
Life income joint and survivor settlement option guarantees
income for 2 or more recipients until they die
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called:
What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?
It determines who receives policy benefits if the primary beneficiary is deceased.
Which of the following riders is often used in business life insurance policies when the policy owner needs to change the insured under the policy?
Substitute insured rider
The policy owner wants to make sure that upon death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principle will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?
Interest only option
The interest earned on policy dividends is:
According to the Entire Contract provision, a policy must contain
A copy of the original application for insurance
Which is true about a spouse term rider?
The rider is usually level term insurance
If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?
The balance of the loan will be taken out of the death benefit
YOU MIGHT ALSO LIKE...
Life Policy Provisions
Life Policy Provisions
Life License Chapter 3
POL California Life: Individual Life Insurance Con…
OTHER SETS BY THIS CREATOR
Missouri Statutes, Rules, and Regulations Common t…
Health Insurance Concepts
Health Policy Provisions, Clauses, and Riders