Life Insurance- Exam 2

The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of

If an insured dies during the grace period with no premiums paid

What is the name of the provision which states that a copy of the application must be attached to the policy when issued?

Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?

What is the purpose for having an accelerated death benefit on a life insurance policy?

All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT

If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies?

Under a life insurance policy, what does the insuring clause state?

The two major actions required for a policyholder to comply with the Reinstatement Clause are

James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires,

An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if

Which situation accurately describes a reduced paid-up nonforfeiture option?

Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt

A whole life insurance policy accumulates cash value that becomes

Which of the following is a reinstatement condition?

An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period?

A waiver of premium rider allows an insured to waive premium payments if the insured is

Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?

Loans obtained by a policyowner against the cash value of a life insurance policy

All of these are standard exclusions found in a life insurance policy EXCEPT

The free-look provision gives the policyowner

Which of the following is considered to be an alternative to a life settlement?

A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n)

The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid

Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?

Ownership of a life insurance policy may be temporarily transferred with a(n)

Which of these is NOT considered to be a common life insurance nonforfeiture option?

A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?

In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST

Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?

A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)

All of the following riders can increase the death benefit amount EXCEPT

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE?

The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of

The two major actions required for a policyholder to comply with the Reinstatement Clause are

Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a(n)

Of the following dividend options, which of these is taxable?

Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?

An error was made on Mary's life insurance application. Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply?

A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)

Which of these is considered to be a Living Benefit option in a life insurance policy?