Question: M has an insurance policy that also has an outstanding policy loan at the time of M’s death. The insurer will deduct the outstanding loan balance from the

Answer: policy proceeds

Question: what is the suicide provision designed to do?

Answer: safeguard the insurer from an applicant who is contemplating suicide

Question: P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

Answer: accidental death and dismemberment provision

Question: B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

Answer: additional Whole Life coverage at specified times

Question: L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will

Answer: adjust the benefit to a reduced amount

Question:

Answer: $50,000 minus any outstanding policy loans

Question: A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Answer: waiver of premium

Question: examples of nonforfeiture option

Answer: extended term , cash surrender, reduced paid-up

Question: 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?

Answer: owners rights

Question: P is the insured on a participating life policy. Which statement is true if P’s premiums are waived due to a disability?

Answer: P will still received dividends