Study sets matching "life insurance provisions options health"

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Study sets matching "life insurance provisions options health"

17 terms
Life Insurance Optional Provision
Policy Exclusions
Life Insurance Nonforefiture value
Nonforfeiture options- 1. Cash Surrender
Nonforfeiture options- 2. Reduced paid…
Most common exclusions are death by: war, aircraft, hazardous…
The policy owner may receive the cash value of the policy at…
You may request an immediate withdrawal of the cash value whe…
If you don't want to pay for the policy anymore, you can trad…
Policy Exclusions
Most common exclusions are death by: war, aircraft, hazardous…
Life Insurance Nonforefiture value
The policy owner may receive the cash value of the policy at…
51 terms
Life Insurance Policies - Provisions, Options and Riders - 2
Which of these is NOT a characteristic…
Of the following dividend options, whi…
Which of these is considered to be a L…
What is the name of the provision whic…
The benefit can be offered as a rider at a specific extra cos…
Accumulation at interest
Accelerated death benefit
Entire Contract
Which of these is NOT a characteristic…
The benefit can be offered as a rider at a specific extra cos…
Of the following dividend options, whi…
Accumulation at interest
41 terms
PA Life and Health Insurance Policy Provisions, Options, and Riders Flashcards
What is the disadvantage of selecting…
What type of assignment is used to sec…
An insurer has discovered a representa…
What are the dividend options in life…
If the beneficiary dies shortly after the payments begin, the…
Collateral Assignment
Pay a reduced death benefit
Cash, Reduced Premium, Accumulation at Interest, Paid-up Addi…
What is the disadvantage of selecting…
If the beneficiary dies shortly after the payments begin, the…
What type of assignment is used to sec…
Collateral Assignment
Life Insurance Provisions Options and Riders
If the beneficiary of a $100,000 life…
If the insured's age was overstated at…
A life insurance policy becomes incont…
All of the following are a part of a l…
$10,000
Provide the additional insurance in the amount that has been…
2 years
Conditional Receipt
If the beneficiary of a $100,000 life…
$10,000
If the insured's age was overstated at…
Provide the additional insurance in the amount that has been…
California Life & Health Insurance 4 - Life Insurance Policy Provisions, Options, & Riders
What type of beneficiary is next in li…
What are the dividend options in life…
What are the three non forfeiture opti…
What happens to a policy's cash value…
Contingent Beneficiary
Cash, Reduced Premium, Accumulation at Interest, Paid-Up Addi…
Cash Surrender, Reduced Paid-Up, and Extended Term
The cash value is converted the same face amount as in the wh…
What type of beneficiary is next in li…
Contingent Beneficiary
What are the dividend options in life…
Cash, Reduced Premium, Accumulation at Interest, Paid-Up Addi…
52 terms
Life Insurance Policies - Provisions, Options and Riders 1
Under a Modified Endowment Contract, w…
The statement which best describes the…
Which of these riders will pay a death…
All of these are characteristics of a…
Pre-death distributions will become taxable
The shorter the payment period, the higher the premium
Family term insurance rider
Fixed surrender value
Under a Modified Endowment Contract, w…
Pre-death distributions will become taxable
The statement which best describes the…
The shorter the payment period, the higher the premium
LIFE INSURANCE POLICY PROVISIONS , OPTIONS AND RIDERS
RIGHTS OF POLICY OWNERSHIP
Standar Policy Provisions
Insuring Clause
Free- Look Provision
The Right to designate and change the beneficiary.... The Right…
The entire contract provision:... The entire contract provision,…
The insuring clause or provision sets forth the company's bas…
The Free-Look provision , required by most states , gives pol…
RIGHTS OF POLICY OWNERSHIP
The Right to designate and change the beneficiary.... The Right…
Standar Policy Provisions
The entire contract provision:... The entire contract provision,…
53 terms
Life Insurance Policies- Provisions, Options, and Riders
Provisions
Riders
Options
Individual policy
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist; used to increase/decrea…
offer insurers and insureds ways to invest or distribute a su…
written on a single life; rate/coverage based on underwriting…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist; used to increase/decrea…
15 terms
Life Insurance Policies - Provisions, Options and Riders(2)
The policy's cost basis is exempt from…
Policy exclusion
"Nonforfeiture options".
A dividend option is selected by the i…
When a life insurance policy is surrendered, how does the cos…
How are acts of war considered under a group life insurance p…
A life insurance policy can be surrendered for its cash value…
Which statement is true regarding policy dividends?
The policy's cost basis is exempt from…
When a life insurance policy is surrendered, how does the cos…
Policy exclusion
How are acts of war considered under a group life insurance p…
49 terms
Life Insurance Policy Provisions, Options, and Riders
Provisions
Riders
Options
(NAIC) National Association of Insuran…
stipulate the rights and obligations of an insurance contract…
Modify provisions that already exist and are used to increase…
offers insurers and insureds ways to invest or distribute a s…
create uniformity among life insurance policies by creating s…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
Modify provisions that already exist and are used to increase…
12 terms
Life Insurance Policy Provisions, Options, and Riders
Terms to Know
Options
Provisions
Riders
...
ways to invest or distribute a sum of money available in a po…
the rights and obligations within the contract
modify policy provisions
Terms to Know
...
Options
ways to invest or distribute a sum of money available in a po…
Life Insurance Policy Provisions, Options & Riders
Provisions
Riders
Options
Standard Provisions (11)
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist and are used to increase…
offer insurers and insureds ways to invest or distribute a su…
1. Entire Contract... 2. Right to Examine... 3. Payment of Premiums…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist and are used to increase…
Life Insurance Policies- Provisions, Options, and Riders
Provisions
Riders
Options
Individual policy
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist; used to increase/decrea…
offer insurers and insureds ways to invest or distribute a su…
written on a single life; rate/coverage based on underwriting…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist; used to increase/decrea…
Life insurance policy provisions, options, and riders
Assignment
Free look
Reinstatement
Exclusions
1. absolute assignment: irrevocably transfer all of your righ…
1. may be canceled with entire policy refunded... 2. starts when…
1. right to apply for reinstatement of lapsed policies... 2. mus…
1. may only be added at the time the new policy is first unde…
Assignment
1. absolute assignment: irrevocably transfer all of your righ…
Free look
1. may be canceled with entire policy refunded... 2. starts when…
Life insurance policy provisions, options, and riders
irrevocable beneficiary
When the reduced paid-up nonforfeiture…
Payor benefit
Cost of living rider
1. beneficiary named by the insured that cannot be change fro…
...
provision that allows the premium of a parent paying for a ch…
rider that increases the amount of your policy to coincide wi…
irrevocable beneficiary
1. beneficiary named by the insured that cannot be change fro…
When the reduced paid-up nonforfeiture…
...
76 terms
Life Insurance Policy Provisions, Options and Riders
provisions
riders
options
third-party ownership
Stipulate the rights and obligations of an insurance contract…
Modify provisions that already exist and are used to increase…
Offer insurers and insureds ways to invest or distribute a su…
When the insured and the owner are not the same person.
provisions
Stipulate the rights and obligations of an insurance contract…
riders
Modify provisions that already exist and are used to increase…
53 terms
Life Insurance Policies- Provisions, Options, and Riders
Provisions
Riders
Options
Individual policy
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist; used to increase/decrea…
offer insurers and insureds ways to invest or distribute a su…
written on a single life; rate/coverage based on underwriting…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist; used to increase/decrea…
72 terms
Life Insurance Policy Provisions, Options & Riders
Provisions
Riders
Options
Ownership
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist and are used to increase…
offer insurers and insureds ways to invest or distribute a su…
the parties to the insurance contract are the insurer, the po…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist and are used to increase…
[Life/Health License] - CH 5 - Life Insurance Policy Provisions, Options and Riders
Rights of Ownership
Standard Policy Provisions
Advantages of a Reinstated Policy vs.…
Cash Loans for Life Insurance
As discussed earlier in the course, life insurance policyowne…
Entire Contract - no prior statements not written in the cont…
The new policy's provisions may be more strict.... The reinstat…
Policyowners can make a policy loan in an amount up to the cu…
Rights of Ownership
As discussed earlier in the course, life insurance policyowne…
Standard Policy Provisions
Entire Contract - no prior statements not written in the cont…
LIFE INSURANCE, POLICY PROVISIONS, OPTIONS AND RIDERS
ABSOLUTE ASSIGNMENT
COLLATERAL ASSIGNMENT
Premium Mode
Grace Period
involves transferring all rights of ownership to another pers…
Involves a transfer of partial rights to another person. It i…
is the manner or frequency that the policyowner pays the poli…
is the period of time after the premium due date that the pol…
ABSOLUTE ASSIGNMENT
involves transferring all rights of ownership to another pers…
COLLATERAL ASSIGNMENT
Involves a transfer of partial rights to another person. It i…
50 terms
Life Insurance policy provisions, options and riders
What does the term 'double indemnity'…
To meet the requirement of the entire…
Who does the common disaster clause pr…
What life insurance policy provision p…
The insurer will pay a benefit of twice the face amount
A copy of the original insurance application
The contingent beneficiary
Incontestability
What does the term 'double indemnity'…
The insurer will pay a benefit of twice the face amount
To meet the requirement of the entire…
A copy of the original insurance application
30 terms
Life Insurance Policy Provisions, Options and Riders
The policy, application, and riders co…
The provision that states that the pol…
The period after a premium is due and…
war is a common exclusion found in a p…
the entire contract provision
ownership provision
the grace period
true
The policy, application, and riders co…
the entire contract provision
The provision that states that the pol…
ownership provision
35 terms
Exam FX Life Insurance - Provisions, Riders and Options
Provisions
Riders
Options
Standard Provisions
stipulate the rights and obligations of an insurance contract
Modify provisions that alkready exist and are used to either…
offer insurers and insureds ways to invest or distribute mone…
ownership, assignment, entire contract, modifications, paymen…
Provisions
stipulate the rights and obligations of an insurance contract
Riders
Modify provisions that alkready exist and are used to either…
50 terms
Life Insurance policy riders, provisions, options, and exclusions
Most life insurance policies have a __…
However, policies such as universal li…
The _______________ is the period of t…
The ___________________ allows a lapse…
level premium
flexible premium
grace period
reinstatement provision
Most life insurance policies have a __…
level premium
However, policies such as universal li…
flexible premium
50 terms
Life Insurance policy provisions, options and riders
what nonforfeiture option is automatic…
what type of assignment is used to sec…
what is the disadvantage of selecting…
what settlement options are available…
Extended term
collateral assignment
if the beneficiary dies shortly after the payments begin, the…
- lump-sum/cash... - fixed period... - fixed amount... - life income... -…
what nonforfeiture option is automatic…
Extended term
what type of assignment is used to sec…
collateral assignment
47 terms
Life Insurance Policy Riders, Provisions, Options, and Exclusions
Life Insurance Policy Riders
Waiver of Premium & Waiver of Premium…
Guaranteed Insurability Rider (GIR)
Payor Benefit Rider
Added to a policy to make it better.
A type of DIABILITY INCOME INSURANCE added to a life policy.…
For YOUNGER applicants only (<35yo)... Enables insured to increa…
Added to a policy WRITTEN on the life of a CHILD.... Similar to…
Life Insurance Policy Riders
Added to a policy to make it better.
Waiver of Premium & Waiver of Premium…
A type of DIABILITY INCOME INSURANCE added to a life policy.…
15 terms
Life Insurance Policies - Provisions, Options and Riders(14)
Second-to-die policy
a modified endowment contract
Modified premium, ordinary life, singl…
require a higher premium payable at ea…
John and Mary have a handicapped child that is financially de…
An insurance policy written after 1988 that fails to pass the…
What is the proper order of initial life insurance premiums,…
In a renewable term life insurance policy, the contract will…
Second-to-die policy
John and Mary have a handicapped child that is financially de…
a modified endowment contract
An insurance policy written after 1988 that fails to pass the…
50 terms
life insurance policy provisions, options and riders
what life insurance policy provision p…
if a settlement option is not chosen b…
what life insurance policy provision s…
what type of assignment is used to sec…
incontestability
lump sum payment
entire contract
collateral assignment
what life insurance policy provision p…
incontestability
if a settlement option is not chosen b…
lump sum payment
13 terms
Life insurance policy provisions, options and riders
what is absolute assignment
what is collateral assignment
what makes the assignment of the polic…
cheapest mode of paying premiums?
assigning absolute control of the policy to the insured
changing the control to the bank temporarily
has to be in writing
annually - less processing fees
what is absolute assignment
assigning absolute control of the policy to the insured
what is collateral assignment
changing the control to the bank temporarily
18 terms
6-Life Insurance Policy Provisions, Options and Riders
Insuring Clause
Consideration Clause
List 3 situations in which the Inconte…
Assignment provision
Sets forth the company's basic promise to pay benefits upon t…
Specifies the amount and frequency of premium payments that t…
Impersonation, No Insurable Interest, Intent to murder.
sets forth the procedure necessary for ownership transfer.
Insuring Clause
Sets forth the company's basic promise to pay benefits upon t…
Consideration Clause
Specifies the amount and frequency of premium payments that t…
Life Insurance Policy , Provisions , Options and Riders
Option
Entire Contract
Incontestability Time
Misstatment of age
Ways to investor distribute a sum of money avaible
The policy includes riders amendment, and copy of the applica…
After 2 years
Death benefit is adjusted according to insured correct age.
Option
Ways to investor distribute a sum of money avaible
Entire Contract
The policy includes riders amendment, and copy of the applica…
53 terms
Life Insurance Policy Provisions, Options and Riders
Cost Of Living Rider
Policy owner
Interest Only Option
Paid-Up option
Adjusts the face amount of a policy to maintain the relations…
Can request changes in Premium payments, face value, loans, a…
Insurer retains policy proceeds and pays interest on the proc…
Insurer can accumulate dividends at interest and then use the…
Cost Of Living Rider
Adjusts the face amount of a policy to maintain the relations…
Policy owner
Can request changes in Premium payments, face value, loans, a…
53 terms
Life Insurance Policies- Provisions, Options, and Riders
Provisions
Riders
Options
Individual policy
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist; used to increase/decrea…
offer insurers and insureds ways to invest or distribute a su…
written on a single life; rate/coverage based on underwriting…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist; used to increase/decrea…
life Insurance Policy Provisions, Options and Riders
irrevocable beneficiary
grace period
autopsy
terminated employee
if the insured names an individual as this they cannot change…
life insurance policy provision that allows coverage to conti…
if the insured dies in a accident, the insurer may request th…
if terminated employee dies within grace period of their empl…
irrevocable beneficiary
if the insured names an individual as this they cannot change…
grace period
life insurance policy provision that allows coverage to conti…
53 terms
Life Insurance Policies- Provisions, Options, and Riders
Provisions
Riders
Options
Individual policy
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist; used to increase/decrea…
offer insurers and insureds ways to invest or distribute a su…
written on a single life; rate/coverage based on underwriting…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist; used to increase/decrea…
53 terms
Life Insurance Policies- Provisions, Options, and Riders
Provisions
Riders
Options
Individual policy
stipulate the rights and obligations of an insurance contract…
modify provisions that already exist; used to increase/decrea…
offer insurers and insureds ways to invest or distribute a su…
written on a single life; rate/coverage based on underwriting…
Provisions
stipulate the rights and obligations of an insurance contract…
Riders
modify provisions that already exist; used to increase/decrea…
Life Insurance Policies, Provisions, Options and Exclusions
Waiver of Premium
Guaranteed Insurability Rider
Payor Benefit Rider
Accidental Death Benefit Rider
Type of disability income insurance addd to life policy, inex…
May be added to policies of younger applicants and enables in…
Similar to waiver of premium, added to a policy written on li…
A type of accident insurance, sometimes multiple indemnity if…
Waiver of Premium
Type of disability income insurance addd to life policy, inex…
Guaranteed Insurability Rider
May be added to policies of younger applicants and enables in…
6 terms
B. Life Insurance Policy Provisions and Options
Defines what is admissible in court
a. Application may be attached, but do…
a. No changes are valid until approved…
c. Producers do not... have authority to…
Entire Contract Clause
Only the policy, endorsements and attached papers, if any
Prevents insurers from ... changing the policy after policy deli…
After approval, change must be endorsed to the policy
Defines what is admissible in court
Entire Contract Clause
a. Application may be attached, but do…
Only the policy, endorsements and attached papers, if any
17 terms
Life Insurance Policy, Provisions, Options and Riders
The full death benefit
Term
Universal Life
There will be an adjustment in her dea…
Sam was killed as a result of a war. His policy didn't have a…
What type of insurance is associated with a Children's Rider?
The Waiver of Cost Rider is most often attached to what type…
Sandy misstated her age when she filled out her Life insuranc…
The full death benefit
Sam was killed as a result of a war. His policy didn't have a…
Term
What type of insurance is associated with a Children's Rider?
44 terms
Life Insurance Policy Riders, Provisions Options & Exclusions
Riders
Options
Entire contract
Insuring Clause
Added to a policy to modify provisions that already exist
offer insurers and insures ways to invest or distribute a sum…
* policy and a copy of the application along with any riders…
* agreement between the insurer and the insured ... * insurers p…
Riders
Added to a policy to modify provisions that already exist
Options
offer insurers and insures ways to invest or distribute a sum…
69 terms
Life Insurance Policy Provisions, Options and Riders
provisions
optional provisions
riders
ownership provision
things that are built into the policy to protect the policy o…
provisions that protect the insurance company
things that you can add to the policy. adding riders to your…
owner has all owner rights
provisions
things that are built into the policy to protect the policy o…
optional provisions
provisions that protect the insurance company
Life Insurance Policy, Provisions, Options, & Riders
Absolute Assignment
ADB
Beneficiary
Cash Surrender Value
The assignment by the policy owner of all control and rights…
Accidental Death Benefit, also known as double indemnity. The…
A person or entity who may become eligible to receive, or is…
The value reposing in a policy that is the legal property of…
Absolute Assignment
The assignment by the policy owner of all control and rights…
ADB
Accidental Death Benefit, also known as double indemnity. The…
295 terms
Life Insurance Policy Provisions, Options, and Riders
Provisions
Riders
policy assignment
Ownership Rights
Stipulate the rights and obligations of an insurance contract…
Modify provisions that already exists and are used to increas…
It transfers rights of ownership from the owner to another pe…
Always belongs to the policyowner
Provisions
Stipulate the rights and obligations of an insurance contract…
Riders
Modify provisions that already exists and are used to increas…
53 terms
Life insurance policy and provisions, options, riders
one year term insurance
reinstatement provision
non-forfeiture option
settlement option
Some participating life insurance policies offer a dividend o…
Most companies will offer the right to apply for reinstatemen…
Once the insured's policy lapses the insurer has to offer the…
The insured/owner of the policy has the right to pre-designat…
one year term insurance
Some participating life insurance policies offer a dividend o…
reinstatement provision
Most companies will offer the right to apply for reinstatemen…
13 terms
Life Insurance Policy, Provisions, options and Riders
Payor Provision... (Payor Waiver of Premi…
Accidental Death Benefit... (Double or Tr…
10-Day Free Look Provision
Three non-forfeiture options
Often added to policies insuring children, if parent becomes…
May be attached to any life Insurance Policy for an extra pre…
Client has 10 days of Policy delivery to rescind the Policy a…
1) Cash Surrender... 2) Reduced Paid-Up... 3) Extended Term
Payor Provision... (Payor Waiver of Premi…
Often added to policies insuring children, if parent becomes…
Accidental Death Benefit... (Double or Tr…
May be attached to any life Insurance Policy for an extra pre…
81 terms
*Life Insurance Policies, provisions, options, riders (30%)
Term Insurance
Level Term Insurance
Decreasing Term
Whole Life Insurance
Temporary protection only provides for the number of years sp…
most common type of temporary protection purchased. level pre…
premiums stay the same but the benefits decrease over the lif…
Permanent Protection.... As long as premium is paid> covered fo…
Term Insurance
Temporary protection only provides for the number of years sp…
Level Term Insurance
most common type of temporary protection purchased. level pre…
28 terms
Life Insurance Policy Provisions, Options and Riders
Absolute Assignment
Collateral Assignment
Modifications
Mode
when you purchase a life insurance policy on the life of anot…
Temporary type of assignment in which you pledge the proceeds…
once issued the policy cannot be modified in any way without…
How often you pay the premiums.
Absolute Assignment
when you purchase a life insurance policy on the life of anot…
Collateral Assignment
Temporary type of assignment in which you pledge the proceeds…
9 terms
Life Insurance Provisions, Options & Riders/Benefits
Family Term
Waiver of Premium Benefit
Accidental Death benefit
Guaranteed insurability benefit
-term insurance can be added to cover spouse or child only, o…
-waives premiums of seriously disabled insured... -starts 6 mont…
-pays additional amount (multiple indemnity) for an accidenta…
-permits future purchases without being asked insurability qu…
Family Term
-term insurance can be added to cover spouse or child only, o…
Waiver of Premium Benefit
-waives premiums of seriously disabled insured... -starts 6 mont…
Life Insurance Policy Provisions, Options and Riders
Assignment
Absolute Assignment
collateral assignment
entire contract provision
policy owner of a life insurance policy has the right to tran…
transferring all rights of ownership to another person or ent…
involves transfer of partial rights to another person. done i…
policy and a copy of the application, along with any riders o…
Assignment
policy owner of a life insurance policy has the right to tran…
Absolute Assignment
transferring all rights of ownership to another person or ent…
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