Free Life Policy Provisions Options and Riders Practice Questions
Alabama Life, Accident & Health exam — 108 practice questions.
Subtopics: Ownership rights, Automatic premium loan, Dividend options, Paid-up additions, Assignment, Collateral assignment, Spendthrift clause, Common disaster, Term rider, Child rider, Return of premium rider, Suicide clause, Grace period, Grace period claim, Incontestability, Incontestability exclusions, Reinstated policy contestability, Entire contract, Misstatement of age or sex, Dividends, Policy loans, Policy loan termination, Policy loan interest, Reinstatement, Death claim settlement, Interest on death claims, Premium increases, Suicide exclusion, Permitted exclusions, Excluded death benefit, Nonforfeiture election, Cash surrender value, Automatic nonforfeiture option, Standard provisions, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Riders, Incontestable clause, Misstatement of age, Primary beneficiary, Irrevocable beneficiary, Minor beneficiary, Per capita, Estate as beneficiary, Dividend option cash, Dividend option reduce premium, Dividend option accumulate at interest, Dividend option one-year term, Joint and survivor settlement, Guaranteed insurability rider, Cost of living rider, Payor benefit rider, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, Accelerated benefits, Premium modes, Free look, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. The owner of a life insurance policy generally has the right to:
Name and change the beneficiary, assign, and access cash value
The policyowner holds the contractual rights, including beneficiary changes, assignment, and access to cash value.
2. An automatic premium loan provision uses available cash value to:
Pay an overdue premium and prevent lapse
An automatic premium loan advances cash value to pay an unpaid premium, keeping the policy in force.
3. Policy dividends from a participating life policy may be:
Taken in cash, used to reduce premiums, or left to accumulate at interest
Dividends can be taken as cash, applied to premiums, accumulated at interest, or used to buy paid-up additions.
4. The paid-up additions dividend option uses dividends to:
Buy small amounts of additional paid-up insurance
Paid-up additions use dividends to purchase small amounts of additional fully paid-up insurance.
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Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
