Exam 14: Standard Life Insurance Contract Provisions And Options

Dallas took out a loan against her life insurance policy's cash value. She died before the loan could be repaid. The face value of the policy was $150,000. The insurer will pay Dallass beneficiary:

(Multiple Choice)

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Question 41

The owner of a life insurance policy has which of the following rights under the contract?

(Multiple Choice)

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Question 42

All lapsed life insurance policies may be reinstated.

(True/False)

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Question 43

The double indemnity option makes good sense for most families since the cost is low,and the option doubles the face amount of insurance for most causes of death other than accident.

(True/False)

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Question 44

An insured has a legal right to borrow an amount up to the face amount of insurance with a whole life policy.

(True/False)

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Question 45

Which of the following is false regarding the incontestable clause?

(Multiple Choice)

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Question 46

Brak purchased a $25,000 life insurance policy from INSCO on January 1. After failing his introductory insurance class,he committed suicide on December 15 of the same year. At the time of his death,he had paid $1,500 in premiums,and his policy had a cash value of $600. How much will INSCO pay Brak's beneficiary,assuming that the policy contained a 2-year suicide clause?

(Multiple Choice)

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Question 47

Which of the following is true?

(Multiple Choice)

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Question 48

The age of the beneficiary is a factor used to calculate the amount paid from a life insurance policy under the __________ settlement option.

(Multiple Choice)

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Question 49

The entire-contract provision makes the application for life insurance a part of the contract itself if attached.

(True/False)

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Question 50

What is the purpose of the reinstatement provision? What are the requirements for reinstatement?

(Essay)

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Question 51

Explain briefly the operation of the guaranteed insurability rider,the waiver of premium rider,and the double indemnity rider.

(Essay)

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Question 52

The insured is the person whose death causes the insurer to pay the claim.

(True/False)

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Question 53

A life insurer has a legal obligation to make a policyholder loan if requested by an insured.

(True/False)

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Question 54

Wayne owns a 20-year renewable term life insurance policy. He decides to let the policy lapse. What happens to his cash value in the policy?

(Multiple Choice)

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Question 55

____________ cannot be a designated life insurance beneficiary.

(Multiple Choice)

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Question 56

One life insurance nonforfeiture option allows the insured to convert a whole life policy into term insurance.

(True/False)

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Question 57

Only whole life insurance policies have a grace period.

(True/False)

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Question 58

Which of the following is not an advantage of using dividends to purchase paid-up additions of life insurance?

(Multiple Choice)

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Question 59

The guaranteed insurability option allows the insured to:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 60

Exam 14: Standard Life Insurance Contract Provisions And Options

Dallas took out a loan against her life insurance policy's cash value. She died before the loan could be repaid. The face value of the policy was $150,000. The insurer will pay Dallass beneficiary:

The owner of a life insurance policy has which of the following rights under the contract?

All lapsed life insurance policies may be reinstated.

The double indemnity option makes good sense for most families since the cost is low,and the option doubles the face amount of insurance for most causes of death other than accident.

An insured has a legal right to borrow an amount up to the face amount of insurance with a whole life policy.

Which of the following is false regarding the incontestable clause?

Which of the following is true?

The age of the beneficiary is a factor used to calculate the amount paid from a life insurance policy under the __________ settlement option.

The entire-contract provision makes the application for life insurance a part of the contract itself if attached.

What is the purpose of the reinstatement provision? What are the requirements for reinstatement?

Explain briefly the operation of the guaranteed insurability rider,the waiver of premium rider,and the double indemnity rider.

The insured is the person whose death causes the insurer to pay the claim.

A life insurer has a legal obligation to make a policyholder loan if requested by an insured.

Wayne owns a 20-year renewable term life insurance policy. He decides to let the policy lapse. What happens to his cash value in the policy?

____________ cannot be a designated life insurance beneficiary.

One life insurance nonforfeiture option allows the insured to convert a whole life policy into term insurance.

Only whole life insurance policies have a grace period.

Which of the following is not an advantage of using dividends to purchase paid-up additions of life insurance?

The guaranteed insurability option allows the insured to:

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