Free Life Policy Provisions Options and Riders Practice Questions
North Dakota Life, Accident & Health exam — 109 practice questions.
Subtopics: Automatic premium loan, Collateral assignment, Change of ownership, Interest-only option, Fixed-period option, Fixed-amount option, Children's term rider, Return of premium rider, Cost-of-living rider, Spendthrift clause, Common disaster, Life income period certain, Grace period, Incontestability, Misstatement of age, Dividends, Policy loans, Reinstatement, Interest on claims, Suicide, Exclusions, Prohibited provisions, Nonforfeiture, Nonparticipating policies, Buyer's guide, Policy summary, Sales presentations, Advertising, Required provisions, Standard provisions, Assignment, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Dividend options, Riders, Incontestable clause, Suicide clause, 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, 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. The automatic premium loan provision in a whole life policy prevents a lapse by:
Using cash value to pay an overdue premium
The automatic premium loan uses available cash value to pay an overdue premium and keep the policy in force.
2. A policyowner who transfers certain policy rights to a lender as security for a loan has made a(n):
Collateral assignment
A collateral assignment transfers certain policy rights to a creditor as security, typically for a loan.
3. The provision that lets the current owner of a life policy name a new owner of the contract is the:
Change of ownership provision
The change of ownership provision allows the policyowner to transfer ownership of the contract to another party.
4. Under the interest-only settlement option, the insurer:
Holds proceeds and pays interest
The interest option leaves the proceeds with the insurer, which pays interest to the beneficiary while holding the principal.
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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.
