Please check below to know the answer. Question 8 30 seconds Q. B) $800 An insurance contract must contain all of the following to be considered legally binding EXCEPT a) Consideration b) Competent parties c) Beneficiary's consent d) Offer and Acceptance. reduced paid-up insurance. Life insurance is a contract in which an insurer, in exchange for a premium, guarantees payment to an insureds beneficiaries when the insured dies. B) Application d) Alzheimer's disease While normally mental and nervous disorders or disease are excluded in long-term care policies, Alzheimer's disease is not. C) Policys cash value is not affected C) Insured has had policy in force for a specified number of years A) Policy Summary Which of these is NOT considered to be a common life insurance nonforfeiture option? C) rider A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to nonpayment. What provision in a life insurance policy states that the application is considered part of the contract? a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. A) Cash surrender If an insureds age on a life insurance policy has been misstated, what is the insurers liability if the insured dies? war. To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. Free Flashcards about Chapter 3 A waiting period must pass before becoming eligible for benefits PDF Long-term Care Insurance Which provision will pay a portion of the death benefit prior to the insureds death due to a serious illness? What does the insuring agreement in a Life insurance contract establish? B) absolute assignment All of the following are standard life insurance policy nonforfeiture options EXCEPT: (A) cash surrender option(B) 1-year term insurance option(C) extended term insurance option(D) reduced paid-up (permanent) insurance option A (B) 1-year term insurance option 6 Q Which of the following statements best describes life insurance policy dividends? D) Accelerated death benefit, Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. D) experiencing financial hardship. a. cash (lump sum). An insureds inability to perform two or more activities of daily living may trigger which type of policy rider? P purchases a $50,000 whole life insurance policy in 2005. A) $400 B) $800 C) $2,000 D) $4,000. All of these are valid policy dividend options for a life insurance policyowner EXCEPT Kurt is an active duty serviceman who was recently killed in an accident while home on leave. B) settlement option Instead, there are four options that the owner can choose from in order to access the accumulated cash value. D) Settlement options. reduced paid-up insurance cash value. All of the following statements are true regarding a policy's Grace period EXCEPT Past due premiums are waived Policy loans may still be made Full coverage continues Grace period terms are stated in the policy Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. James is the insured on a life insurance policy where his age was misstated on the application. Also, the amount of reduced paid-up or extended-term insurance may decrease if a policys sub-account performance is poor or credited interest rates are low. Eric's coverage is still in force because of which life insurance policy provision? B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of, additional Whole Life coverage at specified times. A) Contest the terms of the policy after the issue date C) pay past due premiums, agree to new incontestable period Their purpose is to protect the insured's accumulated cash values in case the Whole Life or Endowment policy lapses. B) It allows for policy loans to be advanced to the insured in the event of unemployment C) The policys premiums will increase after 20 years RogersCoprorationUnadjustedTrialBalanceDecember31,2019, AccountDebitCreditCash$3,100AccountsReceivable15,900Supplies4,200PrepaidRent9,500Equipment625,000AccumulatedDcprcciation$104,000OtherAssets60,900AccountsPayable9,400UnearnedServiceRevenue11,200NotePayable(due2022)50,000CommonStock279,500RetainedEarnings,12/31/201837,000ServiceRevenue598,000WagesExpense137,000RentExpense229,000InterestExpense4,500Totals$1,089,100$1,089,100\begin{array}{lrr} The nonforfeiture benefit is designed to ensure that if you lapse your policy (i.e., stop paying premiums) after a specified number of years, you retain some benefits from the policy. Loans obtained by a policyowner against the cash value of a life insurance policy A whole life policy option where extended term insurance is selected is called a. A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT. Whole Life Insurance: Whats the Difference? C) Reduced paid-up insurance Each brother purchases a life policy that has a $750 annual premium. What does the ownership clause in a life insurance policy state? B) the beneficiary outlived the insured B) nonforfeiture option 40% taxable, similar to a capital gain B. C) Pay full benefits as stated in the policy What will the beneficiary receive if the insured dies during this Grace Period? Accumulation at Interest The policy owner does not forfeit the previous payments and is entitled to receive the policys cash value. C) aviation A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a Pat owns a 20-pay life policy with a paid-up dividend option. Set the qualitative parameters if the engine type is gasoline. Compute SYXS_{Y X}SYX and interpret your findings Compute the MADM A DMAD and interpret your findings. Policyholders can choose to access the policy's cash value through cash . The Consideration clause in a life insurance contract contains what pertinent information? The correct answer is "Automatic Premium Loan Option". Your email address will not be published. Which of the following is a restatement condition? A) It allows for a spouse to be added as a rider to a life insurance policy D is the policyowner and insured for a $50,000 life insurance policy. Eric purchased a cash value life insurance policy six years ago. Quickly and professionally. In the early years of a policy, life insurance companies can deduct fees upon cash surrender. Full coverage continues "What Are Life Insurance Non-Forfeiture Options? Who the policyowner is and what rights the policyowner is entitled to. A) No death benefit is owed because of the misstatement of age A) Grace period c) Beneficiary's consent The four essential elements of all legal contracts are offer and acceptance, consideration, competent parties, and legal purpose. B) The policy will be voided with no death benefits paid C) Paid-Up Additions Option h. Supplies. How much will Ds beneficiarys receive? All of the following are dividend options EXCEPT: Fixed-period installments. C) Reinstatement period Who does the sub-agent represent? B) Ike may eventually take out a policy loan A) Policy has a decreased face amount A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. XCEL Chapter 4 Part 2 Flashcards | Quizlet In what part of an insurance policy are policy benefits found? C) Dividends are always taxable Surrender Value: What's the Difference? An error was made on Marys life insurance application. In personum actions are against the owner of property, whereas in rem actions are taken . B) The full original death benefit listed on the policy D) the claim would be denied, A) the policy would be payable, minus the premium amount, The two major actions required for a policyholder to comply with the Reinstatement Clause are, A) provide evidence of insurability, agree to a new incontestable period A) Long-term care rider In order to convert the engine type (diesel or gasoline) to a qualitative variable, first add a variable. C) reduction in policy premium If an insured dies because of an accident, which type of life insurance rider will provide additional coverage? B) Reduced paid-up insurance She died January 10 without making the premium payment. Term vs. D) Cash dividend option. A) Reduction of premium dividend option The action must be brought a) Within 2 years. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. 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? C) Accelerated rider The common disaster provision states the insurer will continue as if, A) the insured outlived the beneficiary A) Reinstatement clause Quickly and professionally. Sometimes, a policy expires after a so-called grace period. Buy extended insurance with accumulated cash value with no additional premiums required. An insurer can be protected from adverse selection with which policy provision? The following situations involve some form of discrimination. If Ron goes to a doctor who is not a PPO provider, what will happen? An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? For traditional whole-life policies, the owner decides which of four ways (see below) they would like to access the policys cash value. When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? automatically add the amount of interest due to the loan balance. P died five years after purchasing a life policy. d) Extended Term The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time. The automatic premium loan provision is designed to, All of these statements concerning Settlement Options are true EXCEPT A nonforfeiture clause is an element included in standard life insurance and long-term care insurance. the policy may be paid up early by using policy dividends. Which situation accurately describes a reduced paid-up nonforfeiture option? B) Extended term insurance Cash surrender value b. A) Accidental death rider One type of life insurance is a nonparticipating whole life policy in which cash values are based on the insurer's present mortality, investment, and expense experience. Reduce your coverage for the remaining term of the policy and pay no futurepremiums. Primerica Flashcards | Flashcards.io \text { Note Payable (due 2022) } & & 50,000 \\ C) One-year term After a policy has lapsed, which provision allows the insured to continue coverage? Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? D) One-Year Term Dividend Option, A life insurance policyowner does NOT have the right to, A) change a beneficiary This provision is called a(n). Ron joins the PPO provided by his employer. B) add-on B) Disability income rider Unit 6 Flashcards by Lauren Pulido | Brainscape All of the following are considered to be nonforfeiture options A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment. All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT Options a) Extended Term Insurance b) Cash Surrender c) Reducation of Premium d) Reduced Paid-Up Insurance Answer: c) Reduction of Premium Past-due interest payments not paid after 3 months will void the policy A) Bank loans How much will the insurer pay? Explanation: (Life Insurance Policy Provisions, Options and Riders)There are only three non-forfeiture options: 1) Cash Surrender, 2) Reduced Paid-Up and the automatic option, 3) Extended Term. D) the insured and beneficiary died at the same time. Change the beneficiary, if revocable, Modify a provision in the insurance contract.
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