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Test Teachers LIFE SECTION 2 Policy Riders, Provisions, Options and Exclusions
Terms in this set (39)
On the _____ _______ _______ additional amounts of insurance may be purchased without a physical exam only on certain option dates. If the option date is missed, it is lost and cannot be made up.
Guaranteed Insurability Rider
When you make an ________ ___________, you are the assignor. The party you assign your policy to is the __________
Insurance companies have ____ months to defer a request for a loan or cash surrender, although they usually do not exercise this right.
Your policy is the sole collateral for a _________ ________ which may be taken during the grace period.
Suicide is covered after the _________ _________ passes by. If you commit suicide before this has passed by, no benefit is payable but all premiums are refunded to the beneficiary.
An irrevocable beneficiary has a _______ _______ in the policy (often is an ex-spouse).
Under the ________ ________ provision, is it assumed that the insured died last.
The less frequent the mode of payment, the ________ the total annual premium will be and vice versa.
There is no service charge or fee if you elect the ______ mode of payment.
On reinstatement, the ____________ and __________clauses start over.
The misstatement of age provision runs for the duration of the policy. Discovery of a misstated age results in ______
of the ________ _______, not ____________ of the policy
If the interest option is selected, the interest paid is subject to _________.
Proceeds of a life policy left to a beneficiary may not be attached by ________. If there is no beneficiary, proceeds will go into the estate, which may be attached by __________.
A client may exercise the ____ _____ provision without giving any reason.
The free look starts upon ________ __________.If the policy is mailed to the client by the company, this starts on the date of mailing. This is called __________ ________.
The owner's rights section of a life policy states who has the right to change the __________, who can take a ______, and who can take _________ ___________.
The owners of a mutual insurance company are the __________, Dividends received by these owners are not taxable.
Dividends received by the owner of stock in a stock company are _______ as _________ income.They are never taxed as capital gains.
If a beneficiary selects the ________ option, interest payments (which are taxable) will vary, but the beneficiary may withdraw the __________ at any time.
The beneficiary does not have to be of the age of majority (18 or 21 depending upon the state) in order to _________ ________ _______. However, minors may not sign release!
receive policy proceeds
If a policy with a cash value lapses for nonpayment, the client has _____ days from the premium due date to select a ________ _________ _________.
___________ term is the automatic non-forfeiture option
Proceeds cannot be directly paid to a minor child since they can't ______ _ ________
sign a release
The Guaranteed Insurability Rider allows additional insurance to be purchased without a ___________ at specified dates.
A revocable beneficiary may be __________ __ ___ _____ by the policy owner.
changed at any time
A fixed period payout does not guarantee payments for life of the ___________.
The paid up non-forfeiture option may be taken any time there is a ________ _________.
Failure to repay a loan will have a __________ ________ on cash value accumulation.
The entire contract includes the policy and anything else attached at issue, such as _________ and any ________.
The accelerated benefits rider will pay out part of the proceeds _______ _____ _______.They are not ________.
prior to death
A long term care rider allows the insured to take money out of a policy's cash value to pay for qualifying _________ _______ ______ or ______ _______ ____ expenses.
nursing home care or home health care
Any amount used for approved long term care expenses reduces the policy's _________ _________
When an insured pays extra to include the return of premium rider, if the insured should live to the end of the policy term, the premium is ...
returned to the insured tax-free.
GIR stands for
guaranteed insurability rider
They _______ _________ rider would expire when the child reaches age 18 or 21, depending upon the state, or when the payor recovers from his/her disability.
An AD&D rider may be attached to either a _______ or ______ insurance policy.
term or whole life
The purpose of the ________ _________clause is to protect the insured from the insurer making changes to the policy after issuance.
The insuring clause is the insurer's legally enforceable promise to ___.
An insured has lied on an application for life insurance. The policy is incontestable after it has been in force for ___ years.
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