Question: which of the following applies to the 10-day free-look privilege?

Answer: it permits the insured to return the policy for a full refund of premiums paid.

Question: All of the following statements concerning dividends are true:

Answer: - Lower insurance company costs generate higher dividends.

• They stem from favorable underwriting experience.

• - Favorable investment results generate higher dividends.

• - Dividend amounts are NOT guaranteed in the policy.

• Question: The provision which states that both the policy and a copy of the application form the contract between the policy owner and the insurer is called the

• Answer: entire contract

• Question: Under which non-forfeiture option does the company pay the surrender value and have no further obligations to the policy owner?

• Answer: cash surrender

• Question: a rider attached to a life insurance policy that provides coverage on the insured’s family members is called the

• Answer: other-insured rider

• Question: if a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

• Answer: guaranteed insurability rider

• Question: concerning irrevocable beneficiaries…

• Answer: they can be changed only with the written consent of that beneficiary

• Question: A policy assignment….

• Answer: it transfers rights of ownership from the owner to another person

• Question: an insured owns a $500,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy’s cash value, which is currently $20,000. what would be the face amount of the new term policy?

• Answer: 50,000

• Question:

• Answer: 100,000