Free Life Policy Provisions Options and Riders Practice Questions
Kentucky Life, Accident & Health exam — 120 practice questions.
Subtopics: Lump-sum option, Interest-only option, Fixed-period option, Fixed-amount option, Life income option, Assignment, Ownership rights, Automatic premium loan, Common disaster, Spendthrift clause, Accelerated death benefit, Conversion privilege, Free look, Grace period, Incontestability, Incontestability exceptions, Reinstatement, Reinstated policy contest, Misstatement of age or sex, Entire contract, Policy loans, Policy loan deferral, Excess indebtedness, Policy loan interest, Dividends, Suicide exclusion, Permitted exclusions, Limitation of actions, Backdating, Prohibited provisions, Benefits in goods, Replacement return period, Replacement notice, Replacing insurer duties, Replacement sales material, Replacement exemptions, Financed purchase, Replacement contestability credit, Owner rights notice, Retained asset accounts, Exemption from creditors, Standard provisions, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Dividend options, Riders, 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, Return of premium rider, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, Accelerated benefits, Premium modes, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. The life insurance settlement option that pays the entire death benefit to the beneficiary at once is the:
Lump-sum (cash) option
The lump-sum option pays the full death benefit to the beneficiary in a single payment, which is the default for most policies.
2. Under the interest-only settlement option, the insurer:
Retains the proceeds and pays interest to the beneficiary
With the interest-only option, the insurer holds the proceeds and pays the beneficiary the interest earned, leaving the principal intact.
3. The fixed-period settlement option pays the proceeds:
In equal installments over a specified number of years
The fixed-period option distributes principal and interest in equal payments over a chosen number of years.
4. The fixed-amount settlement option pays:
A chosen dollar amount each period until the proceeds and interest are exhausted
The fixed-amount option pays a selected dollar amount each period until the proceeds plus interest run out.
All Life, Accident & Health topics
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.
