Free Life Policy Provisions Options and Riders Practice Questions
Nevada Life, Accident & Health exam — 102 practice questions.
Subtopics: Policy loan, Assignment, Life income option, Fixed-amount option, Spendthrift clause, Common disaster, Ownership rights, Conversion privilege, Accelerated death benefit, Child term rider, Payor benefit, Other-insured rider, Free look, Free look replacement, Grace period, Grace period claims, Grace period interest, Entire contract, Incontestability, Excluded coverage, Reinstatement, Policy loans, Loan deferral, Loan termination notice, Payment of death claims, Misstatement of age, Guaranty cash value limit, Standard provisions, 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, Return of premium rider, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Accelerated benefits, Premium modes, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. The provision in a permanent life policy that lets the owner borrow against the policy's cash value is the:
Policy loan provision
The policy loan provision allows the owner to borrow against the accumulated cash value of a permanent policy.
2. A life insurance owner who pledges the policy as security for a bank loan is making a(n):
Collateral assignment
A collateral assignment transfers only a portion of the policy rights to a creditor as security for a debt.
3. A life insurance settlement option that pays the beneficiary an income for the remainder of their life is the:
Life income option
The life income settlement option pays the beneficiary a guaranteed income for life.
4. A settlement option under which the insurer pays a stated dollar amount at regular intervals until the proceeds and interest are exhausted is the:
Fixed-amount option
The fixed-amount option pays a chosen amount each period until the proceeds and interest run out, with timing varying by balance.
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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.
