Disadvantages of life insurance settlement options include which of the following? I. Higher yields can often be obtained elsewhere. II. Life income options have limited usefulness at younger ages. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about a typical accidental death benefit rider is (are) true? I. Accidental injury must be the cause of death for the increased benefit to be paid. II. The accidental death must occur prior to some specified age for the increased benefit to be paid. A) I only B) II only […]
Date: September 19th, 2020
Reasons for NOT purchasing an accidental death benefit rider include which of the following? I. Most people die as a result of a disease rather than from an accident. II. The economic value of a human life is not increased if death occurs because of an accident. A) I only B) II only C) both […]
Date: September 19th, 2020
Which of the following statements about the guaranteed purchase option is true? A) An insured usually has 24 months to exercise an option. B) The option cannot be exercised until the insured reaches age 40. C) The amount of life insurance that can be purchased at each option is limited to 10 percent of the […]
Date: September 19th, 2020
Which of the following dividend options, sometimes called the “fifth dividend option,” is not offered by all insurers that sell participating life insurance coverage? A) paid-up additions B) reduction of premiums C) accumulation of dividends at interest D) term insurance ANSWER Answer: D
Date: September 19th, 2020
All of the following are nonforfeiture options found in cash value life insurance policies EXCEPT A) cash value. B) reduction of premiums. C) reduced paid-up insurance. D) extended term insurance. ANSWER Answer: B
Date: September 19th, 2020
Which of the following statements is true regarding an automatic premium loan provision? A) Its purpose is to prevent a policy from lapsing because of nonpayment of premium. B) Interest does not have to be paid on an automatic premium loan. C) If the provision is used, the insured must show evidence of insurability to […]
Date: September 19th, 2020
Which of the following statements about the entire contract clause is true? A) It allows the insurer to change the policy terms without the insured’s consent. B) It specifies that all statements in the application are considered warranties. C) It specifies that the life insurance policy and the attached application constitute the complete agreement between […]
Date: September 19th, 2020
Which of the following is a common dividend option found in a participating life insurance policy? A) reduced paid-up insurance B) fixed period C) paid-up additions D) life income ANSWER Answer: C
Date: September 19th, 2020
Amy purchased a life insurance policy with the intent of committing suicide to pay all the debts that were burdening her family If she commits suicide 9 months after the policy is purchased, and the insurer is able to prove that her death was a suicide, how much will be paid by the insurance company? […]
Date: September 19th, 2020
