Free Life Policy Provisions Options and Riders Practice Questions
Minnesota Life, Accident & Health exam — 114 practice questions.
Subtopics: Primary and contingent beneficiaries, Spendthrift clause, Common disaster provision, Assignment, Payor rider, Return of premium rider, Term conversion, Extended term option, Cash surrender, Interest only settlement, Fixed period settlement, Ownership rights, Right to cancel, Replacement free look, Missing cancellation notice, Cancellation notice format, Grace period, Death during grace period, Incontestability, Representations, Statements in the application, Dividends, Policy loans, Policy loan interest, Deferring loans, Reinstatement, Payment of death claims, Backdating, Time to sue, Loan forfeiture notice, Form numbers, Spendthrift provisions, Creditor protection, Premiums in fraud of creditors, Changing beneficiaries, 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, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, 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. If the primary beneficiary dies before the insured the death benefit generally goes to whom?
The contingent beneficiary
If no primary beneficiary survives the insured, the death benefit is generally paid to the contingent (secondary) beneficiary.
2. A spendthrift clause in a life insurance settlement is designed to do what?
Protect proceeds left with the insurer from the beneficiary's creditors
A spendthrift clause withdraws the beneficiary's rights to commute, assign, or borrow against installments, keeping proceeds held by the insurer beyond the reach of the beneficiary's creditors.
3. A common disaster provision is used when what happens?
The insured and primary beneficiary die in the same event
A common disaster provision addresses the situation where the insured and the primary beneficiary die in the same event, generally presuming the insured survived so contingent or estate arrangements apply.
4. Assigning a life insurance policy to a bank as collateral for a loan is an example of what?
A collateral assignment
A collateral assignment transfers a limited interest in the policy to a lender as security for a debt, without transferring full ownership.
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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.
