A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

A The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums.

B The insured's premiums will be waived until she is 21.

C The premiums will become tax deductible until the insured's 18th birthday.

D Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected. - ANSWER- B. The insured's premiums will be waived until she is 21.


Which of the following policy components contains the company's promise to pay? A Entire contract provision

B Insuring clause C Premium mode

D Consideration clause - ANSWER- B. Insuring Clause



Which nonforfeiture option provides coverage for the longest period of time? A Extended term

B Paid-up option

C Accumulated at interest

D Reduced paid-up - ANSWER- D. Reduced Paid-Up

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? A 1 year

 

B 2 years C 5 years

D 7 years - ANSWER- B. 2 years

Which of the following is TRUE about nonforfeiture values?

A A table showing nonforfeiture values for the next 10 years must be included in the policy.

B Policyowners do not have the authority to decide how to exercise nonforfeiture values.

C They are required by state law to be included in the policy.

D They are optional provisions. - ANSWER- C. They are required by state law to be included in the policy.

What is the term for how frequently a policyowner is required to pay the policy premium? A Consideration

B Mode

C Schedule

D Grace period - ANSWER- B Mode


No comments found.
Login to post a comment
This item has not received any review yet.
Login to review this item
No Questions / Answers added yet.
Price $29.00
Add To Cart

Buy Now
Category Exams and Certifications
Comments 0
Rating
Sales 0

Buy Our Plan

We have

The latest updated Study Material Bundle with 100% Satisfaction guarantee

Visit Now
{{ userMessage }}
Processing