Which situation accurately describes a reduced paid-up nonforfeiture option? S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Fin 351 Flashcards | Chegg.com P is the insured on a participating life policy. The rest are all possible exclusions. Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? Of the following dividend options, which of these is taxable? Georgia requires legal actions to be brought forth no sooner than 60 days and no later than 3 years after proof of loss. What does the grace period allow a life insurance policyowner to do? D) Conditions. A person may have a vested interest in property to be forfeit in two ways: In personum jurisdiction and in rem jurisdiction. C) Accelerated death benefit However, the death benefit that surviving dependents of the policy owner would receive is lower than the amount of cash value in the original life insurance policy. B) Free look period An insured is past due on his life insurance premium, but is still within the Grace Period. AzAnswer team is here with the right answer to your question. C) Allows for a full refund after policy delivery Which statement is true regarding policy dividends? until after the adjusting entries are made? C) Policys cash value is not affected Which of these are NOT an example of a Nonforfeiture option? Unit 6 Flashcards by Lauren Pulido | Brainscape 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? C) Paid-up additions Which type of beneficiary is changeable at any point? James is the insured on a life insurance policy where his age was misstated on the application. 9 Q What kind of policy does NOT typically require proof of insurability? Which of the following statements is (are) true with respect to life insurance policy loans? If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? C) no beneficiary was ever named The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiumspaid beforethe policy lapses. C) Incontestable clause Feel free to get in touch with us via email. g. Income taxes of$55,539 are owed but unrecorded and unpaid. C) collateral assignment C) The insurers obligation to pay a death benefit upon an approved death claim Which military service exclusion clause would pay upon his death? A) No death benefit is owed because of the misstatement of age AILife.com. All of the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term b) Interest only Nonforfeiture values include cash surrender, extended term and reduced paid-up. Question 8 30 seconds Q. Past-due interest payments not paid after 3 months will void the policy All of the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term. B) Pay age-corrected benefits In permanent life insurance policies, if you fail to pay the premiums in the grace period, you won't lose your life insurance. In a reduced paid-up insurance option, the policy owner receives a lower amount of payments made as premiums for the original whole life insurance. e. Wages in the amount of $3,450 are owed but unpaid and unrecorded at year end. Reduced Premium. C) A return of excess premium and not taxable One life insurance policy provision specifies that - Course Hero Just like with a conventional loan, youll be charged interest that could range from 5% to 9% on the loan. D) Certificate of Authority, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, A) cash outlay to the policyowner B) The insurer withholds the cost basis C) Reduction of Premium D) Make a policy loan interest payment after the due date without any loss of coverage, B) Make a premium payment after the due date without any loss of coverage. C) A prorated death benefit based on the amount of insurance the insureds premiums would have been if purchased at the correct age D) Income, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT, A) fare-paying passenger A) Cash surrender This rider is called a(n), A) Guaranteed insurability rider Cash Value vs. A) Net death benefit will be reduced if the loan is not repaid N is covered by a Term Life policy and does not make the required premium payment which was due August 1. T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. A) Transfer ownership of the policy Increased proceeds can be provided through accumulation of interest Which situation accurately describes a reduced paid-up nonforfeiture option? Interest only is a settlement option. Under an extended term nonforfeiture option, the policy cash value is converted to answer choices A higher face amount than the whole life policy. A) Accidental death rider A) Waiver of premium provision D) Full face amount. a) Modified life b) Variable life c) Ordinary life d) Graded premium whole life. \hline \text { Cash } & \$ 3,100 & \\ When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Are you looking for the correct answer to the question All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT? Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? D) Waiver of premium, An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n), A) attachment D) hazardous jobs, A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n), A) insuring clause Claims are denied under the Suicide clause of the policy, Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? B) Policy loans 609.5315. C) Provides for the early payment of some portion of the policy face amount should be insured suffer from a terminal illness Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? D) the claim would be denied, A) the policy would be payable, minus the premium amount, The two major actions required for a policyholder to comply with the Reinstatement Clause are, A) provide evidence of insurability, agree to a new incontestable period D) would be subject to a Federal estate tax, B) would not be treated as taxable income, The free-look provision gives the policyowner, A) the right to return the policy for a partial refund within a specified number of days C) all remaining cash values are paid to the policyowner A Medicare Supplement policy must provide coverage for pre-existing conditions after the policy has been in force for a) 1 year b) 2 years c) 90 days d) 6 months. A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy. Full face amount minus any past due premiums. How much will the insurer pay? 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 What does the ownership clause in a life insurance policy state? B) Application 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. What Is Charitable Gift of Life Insurance? 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. Compute SYXS_{Y X}SYX and interpret your findings Compute the MADM A DMAD and interpret your findings. D) The policys cash values steadily decrease after 20 years, B) The policy may be paid up early by using policy dividends, A guaranteed issue insurance policy has no, A) initial premium requirement C) 3/4 of the policys face amount The treatment is expensive and is not covered by Elaine's health insurance. The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n), Accidental Death and Dismemberment rider (AD&D). You can learn more about the standards we follow in producing accurate, unbiased content in our. A) Declarations B) $800 d) The PPO will pay reduced benefits. Opt for reduced coverage with a reduced death benefit for the remaining term of the insurance. 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. A) Bank loans To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. C) Dividends are always taxable ", NAIC.org. 40% taxable, similar to a capital gain B. pilot of personal airplane. A) The agents obligation to provide the proper amount of coverage D) Life income annuity. 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. Your email address will not be published. This value is payable before death. \text { Unearned Service Revenue } & & 11,200 \\ B) Disability income rider D) the insured and beneficiary died at the same time. All of the following are considered to be nonforfeiture options B) Cash Dividend Option D) war, An insured individual and the policys beneficiary die from the same accident. A) The face amount and policy premium are not affected by the payment \text { Accumulated Dcprcciation } & & \$ 104,000 \\ What is an insurer required to do when faced with an error made under the Misstatement of Age provision? 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 An error was made on Marys life insurance application. D was actively serving in the Marines when he was killed in an automobile accident while on leave. Overall, it's the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the policy. C) all past premiums will be refunded with interest Which of these would be considered a Limited-Pay Life policy? automatically add the amount of interest due to the loan balance. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. In personum actions are against the owner of property, whereas in rem actions are taken . D) is injured in a skiing accident and dies 18 months later. 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? Insurance companies can send delinquent interest accounts to a collection agency 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) Incontestability She can reestablish coverage under which of the following provisions? You dont have to worry about it anymore. In most cases, the surrender cash value may be different from the cash value due to the policy owner. B) the policy would be payable only after the beneficiary makes past due premium payment A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT. In order to project a classy image, an expensive seafood restaurant requires that its servers wear tuxedos . Home Flashcards Chapter 4- Policy Provisions, Options and Riders (Exam 2), A waiver of premium rider allows an insured to waive premium payments if the insured is, A) temporarily disabled C) Settlement options Diffusion Let us complete them for you.
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