Free Life Policy Provisions Options and Riders Practice Questions
Delaware Life, Accident & Health exam — 121 practice questions.
Subtopics: Assignment, Interest-only option, Fixed-period option, Fixed-amount option, Automatic premium loan, Spendthrift clause, Accelerated death benefit, Convertible term, Child term rider, Return of premium rider, Common disaster clause, One-year term dividend option, Grace period, Grace period interest, Death during grace, Entire contract, Incontestability period, Incontestability exceptions, Dividend apportionment, Policy loan availability, Policy loan interest, Policy loans on term, Reinstatement period, Reinstatement requirements, Death claim settlement, Interest on death claims, Late death claims, Suicide exclusion, Permitted exclusions, Suit limitations, Backdating, Prohibited provisions, Nonforfeiture election, Cash surrender value, Deferral of cash value, Automatic nonforfeiture option, Replacement defined, Notice Regarding Replacement, Replacement notice signatures, Notice to existing insurer, Existing insurer policy summary, Replacement free look, Replacement exemptions, Replacement records, Cancellation notice, Proof of mailing, Standard provisions, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Dividend options, Riders, Reinstatement, Incontestable clause, Suicide 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, Incontestability, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Accelerated benefits, Premium modes, Free look, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. The provision that lets a life insurance policyowner transfer ownership rights to another party is the:
Assignment provision
The assignment provision allows the policyowner to transfer some or all ownership rights to another party.
2. Under the interest-only settlement option, the insurer:
Holds the proceeds and pays interest to the beneficiary
The interest-only option leaves the proceeds with the insurer and pays the beneficiary interest until the principal is later distributed.
3. The fixed-period settlement option pays the death proceeds:
In installments over a chosen number of years
The fixed-period option pays equal installments over a selected number of years, exhausting the proceeds and interest.
4. Under the fixed-amount settlement option, the beneficiary receives:
Set installments of a chosen amount until funds run out
The fixed-amount option pays a chosen dollar amount each period until the proceeds and credited interest are used up.
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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.
