Free Life Policy Provisions Options and Riders Practice Questions
Louisiana Life, Accident & Health exam — 103 practice questions.
Subtopics: Settlement options, Interest only, Life income, Automatic premium loan, Assignment, Spendthrift clause, Accelerated death benefit, Term conversion, Payor benefit, Return of premium, Family rider, Nonforfeiture, Policy delivery, Conversion notice, Lump sum option, Policy loans, Permitted exclusions, Incontestability and exclusions, Reinstatement interest, Grace period claims, Lapse notice, Death claim payment, Death claim interest, Creditor protection, Standard provisions, Beneficiaries, Beneficiary clauses, Nonforfeiture options, Dividend options, Riders, Grace period, 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, Return of premium rider, Child term rider, Incontestability, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Accelerated benefits, Premium modes, Free look, Entire contract, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. A life insurance settlement option that pays the beneficiary equal installments until the proceeds and interest are exhausted is the:
Fixed amount option
The fixed amount option pays set installments until the proceeds plus interest are used up.
2. Under the interest-only settlement option, the insurer:
Pays only the interest earned
The interest-only option leaves the principal with the insurer and pays the beneficiary the interest earned.
3. The settlement option that guarantees an income the beneficiary cannot outlive is the:
Life income option
The life income option pays the beneficiary for life, so the income cannot be outlived.
4. The automatic premium loan provision helps prevent a policy from lapsing by:
Borrowing cash value to pay the premium
The automatic premium loan uses available cash value to pay a premium that would otherwise go unpaid, preventing lapse.
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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.
