all of the following are nonforfeiture options except

B) incontestable period However, any money you take out will be deducted from the death benefit that goes to your beneficiaries. She is concerned, however, that if she becomes disabled she will be unable to pay the premiums as they come due. Those on Social Security disability automatically qualify for this benefit A) Policy has a decreased face amount Required fields are marked *. the benefit can be offered as a rider at a specific extra cost or may be at no cost. 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? Also, any outstanding amounts on the insured partys coverage are deducted from the cash value. A) Interest only Insurance companies can charge an interest rate based on the policyowners credit report, Past-due interest on a policy loan is added to the total debt. D) Reinstatement, A whole life policy option where extended term insurance is selected is called a(n), A) dividend option 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. Cash surrender value applies to the savings element of whole life insurance policies payable before death. C) reduction in policy premium Which type of beneficiary is changeable at any point? The Accelerated Death Benefit provision in a life insurance policy is also known as a(n), Which statement is TRUE in regards to a policy loan? Refer to the earlier problem. Ron joins the PPO provided by his employer. C) Entire Contract Which statement is true regarding policy dividends? Term vs. For traditional whole-life policies, the owner decides which of four ways (see below) they would like to access the policys cash value. $50,000 minus any outstanding policy loans. B) the policy would be payable only after the beneficiary makes past due premium payment C) Waivers The amount of cash value you will have built-in your policy will be reduced by the amount of any loans against your life insurance. Which of the following statements is (are) true with respect to life insurance policy loans? Feel free to get in touch with us via email. A) 12/15th of the policys face amount She can reestablish coverage under which of the following provisions? C) pay past due premiums, agree to new incontestable period Full coverage continues A) Proof of insurability B) military service The insurance company guarantees a minimum cash value for the insurancepolicy after a specific period, typically three years from when the policy starts. D) $4,000, A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n), A) waiver of premium rider James is the insured on a life insurance policy where his age was misstated on the application. B) aviation 90 percent of forfeiture proceeds go to law enforcement, Law enforcement required to report forfeitures to the state auditor on a monthly basis, and the auditor must then make annual reports to the state Legislature. In a life insurance policy, which feature states that the policy will not cover certain risks? All of the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term. Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply? D) war, An insured individual and the policys beneficiary die from the same accident. a) Modified life b) Variable life c) Ordinary life d) Graded premium whole life. A) It allows for a spouse to be added as a rider to a life insurance policy B) settlement option D) Full face amount. Which of these is considered to be a Living Benefit option in a life insurance policy? If an insureds age on a life insurance policy has been misstated, what is the insurers liability if the insured dies? B) Juvenile waiver D) Nonforfeiture options. Your email address will not be published. Surrender Value: What's the Difference? C) all remaining cash values are paid to the policyowner B) No interest will be charged on loan balance N dies September 15. Taxable *Dividends are a return of unused premiums on which the insured has already paid taxes. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? D) Waiver of premium, An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n), A) attachment Which of these actions will the insurer take? c) Reducation of Premium D) Cash dividend option. B) Waiver of premium rider All of these would be factors that determine how much coverage can be purchased EXCEPT The nonforfeiture clause may also become available when the holder of a whole life insurance policy surrenders the policy. C) There may be a dollar limit on the maximum benefit Which of these require an offer, acceptance, and consideration? An analysis indicates that prepaid rent on December 31 should be $2,300. The policy starts generating returns by the third year, and part of the revenue goes to policy reserve, while the remaining revenue goes to cover administrative costs, agent commissions, and acquisition costs. D) grace period. How many of each item is in stock? D) The benefit can be offered as a rider at a specific extra cost or may be at no cost, D) The benefit can be offered as a rider at a specific extra cost or may be at no cost. B) Extended term insurance Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? \text { Accounts Receivable } & 15,900 & \\ B) guaranteed insurability rider Life Income, Which of the following Dividend options results in taxable income to the policyowner? b. ? C) resubmit a new life insurance application "What Are Life Insurance Non-Forfeiture Options? A Its premium steadily decreases over time, in response to its growing cash value. Cash Value vs. The Consideration clause in a life insurance contract contains what pertinent information? Which of the following statements is (are) true regarding life insurance policyowner dividends? A) Reinstatement clause Have a great time ahead. d) 6 months Pre-existing conditions must be covered after a policy has been in force for 6 months. A) Reinstatement Florida Laws and Rules Pertinent to Insurance, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Chapter 3 - Legal Concepts of the Insurance C. D) Grace period provision. In order to project a classy image, an expensive seafood restaurant requires that its servers wear tuxedos . Which policy provision is responsible for this? There are currently two common types of nonforfeiture benefits being offered with certain insurance policies covering long term care services. a) Treatment payable by Medicare. Charitable gift of life insurance is a way of contributing to charity by taking out life insurance on yourself and naming a charity as a beneficiary. safeguard the insurer from an applicant who is contemplating suicide, A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the. C) Dividend schedule a) Both irrevocable and Revocable. C) Incontestability During the claim process, the insurer discovers that L had understated her age on the application. 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. Which of the following is considered to be an alternative to a life settlement? If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? A) Optional 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.. C) Provides for the early payment of some portion of the policy face amount should be insured suffer from a terminal illness D) Mandatory provision, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST, A) remit all past-due premiums within the grace period What are collateral assignments normally associated with? a. Cash Surrender, A Return of Premium life insurance policy is. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) The policy may be paid up early by using accumulated cash values C) completely and permanently disabled Their purpose is to protect the insured's accumulated cash values in case the Whole Life or Endowment policy lapses. What action will the insurer take? Which of these Nonforfeiture Options continue a build-up of cash value? Or if you were 35 when you purchased your policy and you paid until you were 45, you would receive a term policy less than 10 years. Tax deductible. 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. Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. C) The entire cash value is taxable 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 Extended Term How much will Ds beneficiarys receive? A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT. B) dies of a stroke Unlike conventional loans, policy loans don't necessarily need to be paid back. C) dies instantly from a car accident Which of the following statements is TRUE? B) Ike may eventually take out a policy loan 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. Work with our consultant to learn what to alter. C) Ike will have a level premium This year, it will be nothing.Via Ben Fischer of Sports Business Journal, the Amazon Prime series that follows an NFL team through a full season current is in . All of the following are dividend options EXCEPT: Fixed-period installments. Which life insurance policy provision will permit Elaine to use the life insurance proceeds before she dies to pay for her medical care? Minn. Stat. \text { Common Stock } & & 279,500 \\ When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. When a policy is in force for a longer duration, the better the cash values and the nonforfeiture values. 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. A) The original face amount will be paid to the beneficiary h. Supplies. Thanks for choosing us. If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options? C) Suicide clause C) suicide c) Beneficiary's consent The four essential elements of all legal contracts are offer and acceptance, consideration, competent parties, and legal purpose. Under the Misstatement of Age provision, the insurer will, adjust the death benefit to a reduced amount, The incontestable clause allows an insurer to, contest a claim during the contestable period. A) Long-term care rider \textbf{Unadjusted Trial Balance}\\ Set the qualitative variable to 0 if the engine type is a diesel. C) automatic premium loan D) juvenile waiver rider, If an insured dies during the grace period with no premiums paid, A) the policy would be payable, minus the premium amount residential mobile home parks in shropshire, darden termination policy,

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