f. Service Revenue. Georgia requires legal actions to be brought forth no sooner than 60 days and no later than 3 years after proof of loss. C) Reinstatement period I hope you got the correct answer to your question. automatically add the amount of interest due to the loan balance. pilot of personal airplane. D) is injured in a skiing accident and dies 18 months later. D) The agents obligation to pay a death benefit upon an approved death claim, C) The insurers obligation to pay a death benefit upon an approved death claim. dividend amount used toward purchase Annuities pay regular payments as outlined in the contract. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? D) medical underwriting. All of the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term. Chapter 4- Policy Provisions, Options and Riders (Exam 2) All of the following are TRUE statements regarding the accumulation at interest option EXCEPT The interest credited under this option is not taxable since it remains inside the insurance policy. B) would not be treated as taxable income D) Extended term rider, In a life insurance policy, the entire contract consists of, A) policy and conditional receipt The extended-term payout option allows the policy owner to buy an extended-term policy using the cash values from the original policy. Extended Term Reduced Paid-up Cash Surrender Life Income. 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. A) Accumulation at Interest Option Beneficiary will be paid the Death Benefit. Which of the following statements is CORRECT about accelerated death benefits? What does the guaranteed insurability option allow an insured to do? a. Prepaid Rent. P cannot borrow against the policys cash value while disabled a) Treatment payable by Medicare. When a life insurance policy is surrendered, how does the cost recovery rule apply? 609.5315. C) A return of excess premium and not taxable Who does the sub-agent represent? Standard life insurance and long-term care insurance policies may have a nonforfeiture clause. His $100,000 Whole life policy contains a War Exclusion clause. d. What price range is your specialty? For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are 1. How are surrender charges deducted in a life policy with a rear-end loaded provision? All of the following are nonforfeiture options, EXCEPT. D) Monthly income payments. Under a life insurance policy, what does the insuring clause state? B) Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness C) The entire cash value is taxable C) Period of time after a policy is issued and before it is delivered to policyowner Using this, plot the residuals from the final regression equation created in step (b) against the values of Y that were fitted. B) provide evidence of insurability to the insurer Which of these arrangements allows one to bypass insurable interest laws? Interest only is a settlement option. B) Waiver of Premium Are you having trouble answering the question All of the following are nonforfeiture options, EXCEPT:? D) Family income rider. D) provide a valid reason for the lapse, B) provide evidence of insurability to the insurer. D) Payor benefit. Term vs. B) aviation S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. C) Annuity rider 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. Which type of rider will waive the premium on a childs life insurance policy if the parent paying the premium dies? B) Face amount of the new policy equals that of the original policy D) revoke an absolute assignment. The beneficiary is Ds wife. b) Cash Surrender CFI is the official provider of the global Commercial Banking & Credit Analyst (CBCA) certification program, designed to help anyone become a world-class financial analyst. Fixed Period C) Term life policies are the only type of insurance that allows policy loans The nonforfeiture benefits clause allows the owner to choose full benefits or partial benefits when the premium can no longer be paid starting after a certain number of years. Sometimes, a policy expires after a so-called grace period. A criminal conviction is required for civil forfeiture. Full coverage continues \text { Account } & \textbf { Debit } & \textbf { Credit } \\ In order to convert the engine type (diesel or gasoline) to a qualitative variable, first add a variable. 350 Flashcards | Chegg.com When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? 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. D) It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. A life insurance policy can be surrendered for its cash value under which policy provision? Waiver of Premium Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? Which military service exclusion clause would pay upon his death? Which of the following statements is (are) true regarding life insurance policyholder dividends? A) Accelerated death benefit rider C) accelerated benefit rider $50,000 minus any outstanding policy loans. B) the coverage can be extended with a lump sum payment Instead, you can access your accumulated cash value with the following options: If the policyholder does not make a selection, the terms of the policy will generally stipulate which option would go into effect if the policy lapses or is surrendered. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Which life insurance policy provision will permit Elaine to use the life insurance proceeds before she dies to pay for her medical care? 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 She died January 10 without making the premium payment. C) Guaranteed insurability There are no guarantees for the minimum amount of life insurance available in variable and universal life policies, which allow for variable investing. Which of the questions would you be unlikely to ask when interviewing a real estate agent? A) The face amount and policy premium are not affected by the payment It is taxed as ordinary income. All of the following are optional methods of settlement after the insured has died EXCEPT life income option. Elaine was diagnosed with a terminal illness. A) Payment mode Eric's coverage is still in force because of which life insurance policy provision? Under an extended term nonforfeiture option, the policy cash value is converted to The payable premium amount steadily declines throughout the duration of the contract. 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 The cash surrender value will also be reduced by any outstanding loan amount. b) The key employee has premiums deducted from his salary. B) policy and all sales material Depending on the age of the policy, the cash surrender value could be less than theactual cash value. C) automatic premium loan rider C) Nonforfeiture provision It is tax deductible However, surrendering a portion of the cash value reduces thedeath benefit. c) The business is the owner and beneficiary of the policy. c. Inventory. Forfeiture is broadly defined as the loss of property for failing to obey the law, and that property is generally lost to the state. Rapid depletion of proceeds can be avoided The policyis calculatedfrom the insureds attained age. Individual insurance 2. B) Application B) Entire Contract clause C) Paid-up additions Indicate whether each of the following items is a real or nominal account and whether it appears in the balance sheet or the income statement. Whole Life Insurance: Whats the Difference? Nonforfeiture Benefits for Life Insurance | Life Benefits C) Entire Contract Let us have a look at your work and suggest how to improve it! B) Waiver of premium D) beneficiary assignment, Mike and Ike are 30 year old identical twins. C) policy and any verbal agreements Which of the following would NOT be an exclusion in a long-term care policy? B) select a beneficiary Which of the following is considered to be an alternative to a life settlement? Which statement regarding the Misstatement of Age provision is considered to be true? This rider is called a(n), A) Guaranteed insurability rider Which nonforfeiture option has the highest amount of insurance protection? For traditional whole-life policies, the policyholder decides how they would like to access the policys cash value. This provision is usually provided with an increase in premium I. Which of these is considered to be a Living Benefit option in a life insurance policy? The common disaster provision states the insurer will continue as if, A) the insured outlived the beneficiary Cash Value vs. E and F are business partners. Which of these is NOT a valid policy dividend option? d) The PPO will pay reduced benefits. Nonforfeiture Definition & Meaning - Merriam-Webster Which policy provision is responsible for this? 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. 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. B) Insured becomes totally disabled For some companies, this option may be automatic when surrendering a whole life insurance policy. B) Extended term insurance C) 3/4 of the policys face amount B) Cash Dividend Option A) Entire contract period A) dividend option B) settlement option C) nonforfeiture option D) interest-only option. 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. When a policy is in force for a longer duration, the better the cash values and the nonforfeiture values. B) Pay age-corrected benefits Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. Bruce is involved in an accident and becomes totally and permanently disabled. A) Insured becomes unemployed Which military service exclusion clause would pay upon his death? A) $400 D) Period of time after the premium is due but the policy remains in force, D) Period of time after the premium is due but the policy remains in force, All of these are common exclusions to a life insurance policy EXCEPT, A) accidental death D) Conditions. Learn how it works. What provision in a life insurance policy states that the application is considered part of the contract? All or Nothing is, for this year and maybe for good, nothing Use the accumulated cash value to pay the remaining future premiums. James is the insured on a life insurance policy where his age was misstated on the application. However, during the early years of awhole life insurance policy, the savings portion brings little return compared to thepremiumspaid. D) interest-only option. In most cases, the surrender cash value may be different from the cash value due to the policy owner. C) Cash value is surrendered to policyowner B) 1/2 of the policys face amount Suppose the first residual is 12.0(instead of 2.0 ) and the last residual is -11.0(instead of -1.0). Which of the following statements is TRUE? the benefit can be offered as a rider at a specific extra cost or may be at no cost. a) Modified life b) Variable life c) Ordinary life d) Graded premium whole life. a) Extended Term Insurance P purchases a $50,000 whole life insurance policy in 2005. How much do I qualify to borrow? To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. Only the beneficiary may select, In a Life insurance contract, an insurance companys promise to pay stated benefits is called the. You can get your paper edited to read like this. Ron joins the PPO provided by his employer. D) experiencing financial hardship. A) Cancel the policy P will still receive declared dividends Universal life (UL) insurance is permanent life insurance with an investment savings component. \text { Accounts Payable } & & 9,400 \\ d) The key employee is the insured. Which of these is NOT a characteristic of the Accelerated Death Benefit option? Some companies offer an annuity option in the nonforfeiture clause. war. Have a great time ahead. Which of these describe a participating life insurance policy? Unlike conventional loans, policy loans don't necessarily need to be paid back. B) Probation period Pat owns a 20-pay life policy with a paid-up dividend option. What is an insurance policys grace period? It stipulates that the policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments. 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. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. C) aviation Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot?
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