Life and Health Insurance

Which of these Nonforfeiture Options continue a build-up of cash value?

Reduced Paid-Up

Which of these provisions require proof of insurability after a policy has lapsed?

Reinstatement

A Nonforfeiture clause gives the policyowner

guaranteed values even if the policy has lapsed

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

Owner's Rights

How are policyowner dividends treated in regards to income tax?

Interest on accumulations is taxed

How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period?

Claims are denied under the Suicide clause of the policy

The_____ is authorized to assign a Life Insurance policy as collateral for a loan.

policyowner

Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan?

Collateral assignment

S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?

Automatic Policy Loan

The free-look provision begins

upon receipt of the policy by the policyowner

Typically a life insurance death benefit is paid by a lump-sum payment. A(n) ____ option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment.

settlement

Which rider provides coverage for a child under a parent's life insurance policy?

Child term rider

What does the ownership clause in a life insurance policy state?

Who the policyowner is and what rights the policyowner is entitled to

When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

at future dates specified in the contract with no evidence of insurability required

Which of the following Nonforfeiture options offers the highest death benefit?

Extended term

Which of these is NOT considered to be a right given to a policyowner?

Which statement is TRUE in regards to a policy loan?

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Waiver of Premium

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?