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Xcel solutions chapter 3 - policy
provisions With 100 Questions And
Answers
B recently died and was insured with a life insurance policy for over five years. during the claims process, the insured discovered that B had understated his age by five years at the time of application. In the situation, the insurer will - โ โ Pay the amount that the premium would have purchased at the correct age
All of the following statements are true regarding a policies grace. Except - โ โ Past due premiums are waived
Which of these nonforfeiture options continue a buildup of cash value - โ โ Reduced paid up
D was actively serving in the Marines when he was killed in an automobile accident while I leave. His hundred thousand dollar whole life policy contains a work exclusion clause. How much will D's beneficiary receive - โ โ The full face of amount
All of these statements concerning settlement options are true except - โ โ only the beneficiary may except
The purpose of the _______ period cpause is to avoid A unintentional lapse of a life insurance policy - โ โ Grace
what is the suicide provision designed to do - โ โ Safeguard the insurer from a applicant who is contemplating suicide
What benefit on a payor clause on a juvenile life policy provide - โ โ Premiums are waived if the payor becomes disabled
A term life rider offers the insured - โ โ Additional life coverage
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? - โ โ Variable universal life
What does the ownership clause in a life insurance policy state? - โ โ Who the policy owner is and what rights the policy owner is entitled to
A nonforfeiture clause gives the policyowner - โ โ Guarantees values even if the policy has lapsed
All of the settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - โ โ Interest only
What provision in a Life insurance policy States that the application is considered part of the contract - โ โ Entire contract provision
The consideration clause in a Life insurance contract contains what pertinent information - โ โ amount of premium payments and when they are due
A life insurance policy owner would like to take out A policy loan against the cash value in his whole life policy. The interest rate applied to his loan may vary over time. This is referred to as a ________ rate loan. - โ โ Variable
Which statement regarding the Mistakement of age provision is considered to be true - โ โ Coverage will be adjusted to reflect the insured's True age if a misstatement of age is discovered
the application. Under the misstatement of age provision, the insurer will - โ โ Adjust the death benefit to a reduced amount
When an insurer issues a policy that refuses to cover certain risk, this is referred to as a - โ โ Exclusion
M had a annual life insurance premium payment due January 1 she died January 10 without making the premium payment what action will the insurer take - โ โ Pay face amount minus the past due premium
A cost of living rider gives the insured - โ โ Additional death benefits
Who's life is covered on a life insurance policy that contains a payer benefit clause - โ โ Child
What does the insuring agreement in a Life insurance contract establish
- โ โ An insurer's basic promise
How do a life insurance companies handle cases where the insured commits suicide within the contract's stated contestable period? - โ โ Claims are denied under the suicide clause of the policy
N is covered by term life policy and does not make the required premium payment which was due August 1. N die September 15 what action will the insurer take? - โ โ Claim will be denied
S would like to use dividends from her life insurance policy to purchase paid up additions. All of these would be factors that determine how much coverage can be purchased except - โ โ Beneficiary's age
Additional coverage can be added to a whole life policy by adding a - โ โ Decreasing term rider
The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called - โ โ Reinstatement
Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disabled? - โ โ Payor clause
Which of these statements about A guaranteed insurability option rider is not true - โ โ Evidence of insurability is required when the option is exercised
S buys a $10,000 whole life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays The beneficiary $10,500. What kind of rider did ass include on the policy - โ โ Return of premium ride
A policy owner May generate taxable income from which the following dividends options - โ โ Accumulation at interest
Which of these actions just taken when a policy on her uses a life insurance policy as collateral for a bank loan - โ โ Collateral assignment
Which of these types of policies may not have the automatic premium loan provision attached to it - โ โ Decreasing term
M has an insurance policy that also has a outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - โ โ Policy proceeds
And insured inability to perform two or more activities of daily living may trigger which type of life policy rider - โ โ Long term Care
A ______ rider May be used to include coverage for children under their parents life insurance policy - โ โ Term
The accidental death and dismemberment provision in a life insurance policy would pay additional death benefits if the insured - โ โ Is blinded in an accident
T check out a $50,000 life insurance policy with an accidental death and dismemberment rider. Five years later, T Commit suicide. How much will the insurer pay - โ โ $50,
In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy - โ โ Owners rights
And insured is past due on his life insurance premium, but Is still within the grace period. What will the beneficiary receive as the insured dies during the gray period - โ โ Full face amount minus any past due premiums
Which rider provides coverage for a child under a parent's life insurance policy? - โ โ Child term rider
A potential client, age 40, would like to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the
policy. Which of these statements made by the producer would be correct? - โ โ 20-pay life accumulates cash value faster than straight life
D owns a whole life policy that was purchased 10 years ago. If the premium payment suddenly stop and D takes no additional action, which nonforfeiture option will be insurer likely proceed with? - โ โ Extended term
D is the policy owner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D Remarries, transferring ownership of his policy to his new wife. If D Dies without making any further changes, I home will the policy proceeds to say to? - โ โ Ex-Wife
Which of these NOT an example nonforfeiture option? - โ โ Life income
Which of these life insurance riders allows to applicant to have access coverage - โ โ Term rider
Typically a life insurance death benefit is paid by lump sum payment. A ______ option is a method of distributing a life insurance policies death benefit other than Buy a lump sum payment - โ โ Settlement
The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called - โ โ Accidental death and dismemberment rider
The incontestable clause allows the insurer to - โ โ Contest a claim during the contestable period
A whole life Insurance policy owner does not have the right to - โ โ Change the grace period
The consideration clause in a life insurance policy indicates that a policy owners consideration consist of a completed application and - โ โ The initial premium
Dividends paid from A life insurance policy are - โ โ Issued by the insurer
The free-look provision begins - โ โ Upon a receipt of the policy by the policy owner
J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions? - โ โ Reinstatement provision
Variable whole life insurance can be described as - โ โ both an insurance and securities product
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of - โ โ Additional whole life coverage at specified times
How are surrender charges deducted in a life policy with a rear end loaded provision - โ โ Deducted when the policy is discontinued
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - โ โ At future dates specified in the contract with no evidence of insurability required
The accelerated death benefit provision in a life insurance policy is also known as a - โ โ Living benefit
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she chose? - โ โ Paid-up additional insurance
The _______ has the right to change a life insurance policy's beneficiary
What action will an insurer take if an interest payment on a policy loan is not made on time - โ โ Automatically add the amount of interest due to the loan balance
What action can I policy owner take if an application for a bank loan requires collateral - โ โ Assign policy ownership to the bank
In a life insurance policy which feature states that the policy will not cover certain risk - โ โ Exclusion
P died five years after purchasing a life policy. While investigating The claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? - โ โ Beneficiary will be paid the death benefit
A provision in a life insurance policy that pays the policy owner an amount that does not surpass the guarantee cash value is called the - โ โ Policy Loan provision
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in
- What will the insurer pay to P's beneficiary? - โ โ $50, minus any outstanding policy loans
