Exam 12: Life Insurance Contractual Provisions

Which of the following statements about the ownership of a life insurance policy is (are)true? I.Under the ownership clause,the policyowner and beneficiary equally share all contractual rights in the policy while the insured is living. II.The policyowner can designate a new owner by filing an appropriate form with the insurance company.

The transfer of all ownership rights in a life insurance policy can be accomplished through a(n)

Cal purchased a whole life policy 6 years ago.The policy requires annual premium payments.Cal forgot to pay the premium that was due 2 weeks ago.He wonders if his life insurance is still in force.Which life insurance policy provision is designed to keep the policy in force for a short time even if the premium payment is late?

Malcolm would like to purchase life insurance.He is concerned that he might need additional life insurance in the future and that he might be uninsurable at that time.What provision can Malcolm add to his life insurance policy that will permit him to purchase additional life insurance at specified times in the future without providing evidence of insurability?

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?

Which of the following statements is (are)true concerning settlement options? I.A straight life annuity provides the lowest periodic income of all the life income options. II.Fixed-period and fixed-amount are life income options.

Which life insurance policy provision specifies that it is the policyowner,and not the insured or beneficiary,who possesses all contractual rights while the policy is in force?

The practice of buying the life insurance policy of a terminally ill insured at a discount is referred to as a

Which of the following statements about the waiver-of-premium provision is true?

All of the following statements about the interest settlement option are true EXCEPT

Becky is considering the purchase of a whole life policy on her own life.She is concerned that if she becomes disabled,paying premiums will become a burden.Which provision can Becky attach to her life insurance policy to address this concern?