life insurance ch 5, 6, 7, 8

ch 5 the policyowner wants to make sure that upon his death the life policy will pay a portion of the proceeds annually to his spouse but that the principal will be paid to their children when they reach a certain age. which settlement option should the policyowner choose?

interest only option

ch 5 which is true about the 10 day free look period in a life insurance policy

it begins when the policy is delivered

ch 5 the paid up addition option uses the dividend

to purchase a smaller amount of the same type of insurance as the original policy.

ch 5 if a settlement option is not chosen by the policyowner or the beneficiary which option will be used?

lump sum

ch 5 the type of settlement option which pays throughout the lifetimes of two or more beneficiaires is called

joint and survivor

ch 5 which settlement option provides a single beneficiary with income for the rest of their life

single life

ch 5 when a life insurance policy stipulates that the beneficiary will receive payments in specified installements or for a specified number of years what provision prevents the beneficiary from changing or borrowing from planned installments

spendthrift provision

ch 5 items that stipulated in the contract that the insurer will not provide coverage for are found in the

exclusions clause

ch 5 an insured has a life insurance policy from a participating company and receives quarterly dividends he has instructed the company to apply the policy dividends to increase the death benefit the dividend option that the insured has chosen is

paid up additions

ch 5 the provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

entire contract

ch 5 when a life insurance policy was issued the policyowner designated a primary and a contingent beneficiary. Several years later both the insured and the primary beneficiary died in the same car accident and it was impossible to determine who died first which would receive the death benefit

The insured contingent beneficiary

ch 5 what required provision protects against unintentional lapse of the policy

grace period

ch 5 under an extended term nonforfeiture option the policy cash value is converted to

the same face amount as in the whole life policy

ch 5 when a policy owner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals this is called

class designation

ch 5 which explains the policyowners right to change beneficiaries choose benefit payment options and assign the policy

owners rights

ch 5 according to the entire contract provision a policy must contain

a copy of the original application for insurance

ch 5 for how long is an insurance company allowed to defer policy loan requests

6 months

ch 5 the clause that protects the proceeds of a life insurance policy from creditots after the death of the insured is known as

spendthrift clause

ch 5 a policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all the rights of ownership. The policyowner should have her husband named

as the revocable beneficiary

ch 5 what is the benefit of choosing extended term as a nonforfeiture option

it has the highest amount of insurance protection

ch 5 the primary beneficiary of her husbands life policy found that no settlement option was stated in the policy on the date of her husbands death. Who will select the settlement option in this case

the beneficiary

ch 5 if an insured dies without paying outstanding loans on his whole life policy how will that affect the death benefit?

the loan amounts will be deducted from the death benefit.

ch 5 an insured wants to change from an annual premium mode to a monthly premium mode

this change can only be made on the policys anniversary.

ch 5 j applied for a life insurance policy on january 10. the policy was issued on january 31, j’s agent was vacationing at the time policy was issued so j didnt receive the policy until feb 18, j decides that he doesnt want the policy when would j need to return the policy to the insurer in order to receive a full refund of premium paid

feb 28th or 10 dayss after the time the policy is delivered

ch 5 using a class designation for beneficiares mean

naming beneficiaries as a group

ch 5 under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner

cash surrender

ch 5 life income joint and survivor settlement option guarantees

income for 2 or more recipients until they die

ch 5 which protects the insured from an unintentional policy lapse due to a nonpayment of premium

automatic oremium loan

ch 5 the validity of coverage under a life insurance policy may not be contested except for non payment of premium after the policy has been in force for at least how many years

2 years

ch 5 if a life insurance policy has an irrevocable beneficiary designation

The beneficiary can only be changed with written permission of the beneficiary