Free Life Policy Provisions Options and Riders Practice Questions
Oregon Life, Accident & Health exam (series 12-03) — 118 practice questions.
Subtopics: Automatic premium loan, Collateral assignment, Interest-only option, Fixed-amount option, Children's term rider, Return of premium rider, Cost-of-living rider, Common disaster, Spendthrift clause, Life income period certain, Change of ownership, Grace period, Incontestability, Reinstatement, Dividends, Policy loans, Nonforfeiture, Prohibited provisions, Assignment, Accelerated benefits, Replacement, 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, 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 the 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. Under the interest-only settlement option, the insurer:
Holds the proceeds and pays interest
The interest option leaves the proceeds with the insurer, which pays interest to the beneficiary while holding the principal.
4. Under the fixed-amount settlement option, the beneficiary receives:
A set amount each period until used up
The fixed-amount option pays a chosen dollar amount each period until the proceeds and interest are exhausted.
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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.
