Chapter 3 Life Insurance
Policies- Provisions, Options
and Riders (Exam 2)
Which statement is TRUE in regards to a policy loan? - Ans>>>Past-due interest on
a policy loan is added to the total debt
D was actively serving in the Marines when he was killed in an automobile
accident while on leave. His $100,000 Whole life policy contains a War Exclusion
clause. How much will D's beneficiaries receive? - Ans>>>The full-face amount
An insured's inability to perform two or more activities of daily living may trigger
which type of policy rider? - Ans>>>Long term care
, A long term care rider is triggered by the insured's inability to perform two or
more activities of daily living.
All of these statements concerning Settlement Options are true EXCEPT -
Ans>>>Only the beneficiary may select
Settlement options may be selected by the policy-owner
How do life insurance companies handle cases where the insured commits suicide
within the contract's stated Contestable period? - Ans>>>Claims are denied under
the Suicide clause of the policy
What action will an insurer take if an interest payment on a policy loan is not
made on time? - Ans>>>automatically add the amount of interest due to the loan
balance
Unpaid interest from a policy loan is added to the loan balance if not paid by the
due date.
Policies- Provisions, Options
and Riders (Exam 2)
Which statement is TRUE in regards to a policy loan? - Ans>>>Past-due interest on
a policy loan is added to the total debt
D was actively serving in the Marines when he was killed in an automobile
accident while on leave. His $100,000 Whole life policy contains a War Exclusion
clause. How much will D's beneficiaries receive? - Ans>>>The full-face amount
An insured's inability to perform two or more activities of daily living may trigger
which type of policy rider? - Ans>>>Long term care
, A long term care rider is triggered by the insured's inability to perform two or
more activities of daily living.
All of these statements concerning Settlement Options are true EXCEPT -
Ans>>>Only the beneficiary may select
Settlement options may be selected by the policy-owner
How do life insurance companies handle cases where the insured commits suicide
within the contract's stated Contestable period? - Ans>>>Claims are denied under
the Suicide clause of the policy
What action will an insurer take if an interest payment on a policy loan is not
made on time? - Ans>>>automatically add the amount of interest due to the loan
balance
Unpaid interest from a policy loan is added to the loan balance if not paid by the
due date.
