Sometimes, a policy expires after a so-called grace period. from October 1 to December 31 is unpaid and unrecorded. A lower face amount than the whole life policy. B) unemployed a) Treatment payable by Medicare. Minn. Stat. When an accidental death benefit is added to a whole life policy, how does this affect the policys cash value? Reduce your coverage for the remaining term of the policy and pay no futurepremiums. However, when the policy is terminated or the owner surrenders the policy, the death benefit ceases to exist. Such an option considers the saving component of the policy. A) Insuring clause Which of these would be considered a Limited-Pay Life policy? How many first time home buyers did you work with last year? Your email address will not be published. d. Accumulated Depreciation-Equipment. pilot of personal airplane. D) the right to return the policy for a full refund within a specified number of days, D) the right to return the policy for a full refund within a specified number of days, The double indemnity provision in a life insurance policy pertains to an insureds death caused by a(n), A) sickness C) are limited by the face amount of the policy A) Dividends are always guaranteed C) Cash value is surrendered to policyowner Which of these are NOT an example of a Nonforfeiture option? If Ron goes to a doctor who is not a PPO provider, what will happen? Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? D) war. "Standard nonforfeiture law for life insurance.". With the extended term option, you can choose to use the cash value in a whole life insurance policy to term insurance, allowing you to stop paying premiums. war. L4. Life Insurance Policy Provisions Options and Riders D) hazardous occupations. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. This provision is the, All of the following are nonforfeiture options EXCEPT. C) Reinstatement period B) One year term Must have a terminal illness to qualify. The reduced life insurance coverage is calculated based on the insureds attained age, cash surrender value, and the number of premiums paid by the policy owner. the death benefit paid will be what the premium would have purchased at the correct age. Mississippi. B) Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness Ron joins the PPO provided by his employer. Your email address will not be published. Life Policy, Riders and OptionsQ1 Quiz - Quizizz For example, if you purchase a policy when you were 20 and you paid until age 55, you would receive a term policy that is less than 35 years. a) Modified life b) Variable life c) Ordinary life d) Graded premium whole life. ? A physical inventory shows that$650 of office supplies is on hand. Learn how policy loans work and about their risks. D) One-Year Term Dividend Option, A life insurance policyowner does NOT have the right to, A) change a beneficiary N is covered by a Term Life policy and does not make the required premium payment which was due August 1. \text { Unearned Service Revenue } & & 11,200 \\ A policy loan is made possible by which of these life insurance policy features? C) Annuity rider D) irrevocable assignment. \text { Prepaid Rent } & 9,500 & \\ safeguard the insurer from an applicant who is contemplating suicide, A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the. A) Optional rider D) war. Which type of beneficiary is changeable at any point? The face amount equal to the cash value. A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT. D) Automatic premium loan provision, Matt is applying for life insurance and requests a double indemnity rider. He forgot to pay the premium that was due last week. $100,000, L takes out a life insurance policy and dies 10 years later. In order to project a classy image, an expensive seafood restaurant requires that its servers wear tuxedos . d. What price range is your specialty? How much do I qualify to borrow? A) $400 B) $800 C) $2,000 D) $4,000. B) past due premiums that have not been paid by the end of the grace period Inability of the insured to perform more than 2 Activities of Daily Living (ADLs), The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured. C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill M had an annual life insurance premium payment due January 1. Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? If a policy owner has continually made premium payments for a sufficient amount of time, a forfeiture clause might become active in one of two ways. D) nonforfeiture provision, A whole life insurance policy accumulates cash value that becomes, A) the policy loan value which the insured may borrow against Depending on the age of the policy, the cash surrender value could be less than theactual cash value. 3. The correct answer is "Automatic Premium Loan Option". Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. When the owner of whole-life insurance policy surrenders thepolicy, they have several nonforfeiture options. Evidence of insurability is required when the option is exercised What is the name of the provision which states that a copy of the application must be attached to the policy when issued? C) Insured has had policy in force for a specified number of years D) Allows the insured to convert a term life policy to whole life with no evidence of insurability, B) Purchase additional coverage with no evidence of insurability required, Loans obtained by a policyowner against the cash value of a life insurance policy, A) are treated as taxable income AzAnswer team is here with the right answer to your question. suicide. The policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments. The same face amount as in the whole life policy. C) Incontestable clause One type of life insurance is a nonparticipating whole life policy in which cash values are based on the insurer's present mortality, investment, and expense experience. The insurance company guarantees a minimum cash value for the insurancepolicy after a specific period, typically three years from when the policy starts. C) The policys premiums will increase after 20 years 9 Q What kind of policy does NOT typically require proof of insurability? C) resubmit a new life insurance application Chapter 3.2 - Subjecto.com All of the following statements are true EXCEPT, A) Mikes policy will develop no cash value over the policys term This value is payable before death. Work with our consultant to learn what to alter. The restaurant hires only male wait staff. C) Incontestability c) Reducation of Premium The policy would retain a cash value component, but it would grow at a reduced rate. The following are the payout options outlined in the nonforfeiture clause of a whole life insurance policy: If a policy owner chooses the cash surrender value option, the insurer will pay the remaining cash value within six months. The owner gets the cash surrender value in cash, either partially or in full. What Is Charitable Gift of Life Insurance? D) experiencing financial hardship. If he dies, how will the adjusted death benefit be calculated? Which of the following is CORRECT regarding the death benefit amount? Extended Term \text { Accounts Receivable } & 15,900 & \\ All of the following are TRUE statements regarding the accumulation at interest option EXCEPT The interest credited under this option is not taxable since it remains inside the insurance policy. The term policy ends after a fixed number of years as detailed in the policys nonforfeiture table. Which of the following statements is true? Full coverage continues automatically add the amount of interest due to the loan balance. B) Age B) Waiver of Premium Have a great time ahead. Life Income, All of the following statements are true regarding a policys Grace period EXCEPT A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. D) the insured and beneficiary died at the same time. D) buy additional insurance coverage, All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT, A) Extended Term Insurance In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. C) suicide Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Which of these would limit a companys liability to provide insurance coverage? B) Cash Dividend Option What is an insurance policys grace period? Interest only is a settlement option. Chapter 8 Quiz Flashcards | Quizlet \text { Totals } & \underline{\underline{\$ 1,089,100}} & \underline{\underline{\$ 1,089,100}} Work with our consultant to learn what to alter, Chapter 4- Policy Provisions, Options and Riders (Exam 2). If an insured dies because of an accident, which type of life insurance rider will provide additional coverage?