Question:

Answer: claims are denied under the suicide clause of the policy

Question: The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured’s death is called a(n)

Entire Contract provision

Consideration clause

Insuring agreement

Assignment agreement

Answer: the insuring clause or “insuring agreement”

Question: What action will an insurer take if an interest payment on a policy loan is not made on time?

-cancel the policy if not paid within the grace period

-automatically add the amount of interest due to the loan balance

-subtract from any dividends owed

-disallow any further loans

Answer: automatically add the amount of interest due to the loan balance

Question: When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

elimination

exclusion

limitation

exception

Answer: exclusion

Question: All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured’s death EXCEPT

Fixed Period

Interest Only

Fixed Amount

Life Income

Answer: interest only does not systematically liquidate

Question: The automatic premium loan provision is designed to

-provide a source of revenue to the insurance company

-avoid a policy lapse

-allow a policyowner to request a policy loan

-allow a policyowner to take out additional coverage without evidence of insurability

Answer: avoid a policy lapse

Question: An insured’s inability to perform two or more activities of daily living may trigger which type of policy rider?

Waiver of premium

Long term care

Accelerated death benefit

Accidental

Answer: long term care

Question: A Return of Premium life insurance policy is

a Nonforfeiture option

Whole life and Increasing term

interest-sensitive

Variable life

Answer: whole life and increasing term

Question: In a Life insurance contract, an insurance company’s promise to pay stated benefits is called the

Insuring clause

Consideration clause

Entire Contract

Owner’s rights

Answer: insuring clause

Question:

Answer: ex-wife because though she is not the owner, she still is the beneficiary