Free Life Policy Provisions Options and Riders Practice Questions
South Dakota Life, Accident & Health exam — 106 practice questions.
Subtopics: Ownership provision, Collateral assignment, Interest option, Fixed-period option, Fixed-amount option, Life income option, Spendthrift clause, Common disaster, Payor benefit, Family term rider, Free look, Replacement free look, Grace period, Incontestability, Suicide exclusion, Permitted exclusions, War exclusion, Reinstatement, Policy loans, Interest on proceeds, Entire contract, Misstatement of age, Legal actions, Assignment, 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, Child term rider, 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 identifying who may exercise rights such as naming the beneficiary or taking a policy loan is the:
Ownership provision
The ownership provision identifies the policyowner, who holds the rights to name beneficiaries, take loans, and make changes.
2. A policyowner who pledges certain policy rights to a bank as security for a loan has made a(n):
Collateral assignment
A collateral assignment temporarily transfers certain policy rights to a lender as security for a loan.
3. Under the interest settlement option, the insurer:
Holds the proceeds and pays interest on them
The interest option leaves the proceeds with the insurer, which pays the beneficiary interest while holding the principal.
4. The fixed-period settlement option pays the policy proceeds:
In equal installments over a chosen number of years
The fixed-period option pays the proceeds plus interest in equal installments over a selected number of years.
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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.
