Free Life Policy Provisions Options and Riders Practice Questions
Vermont Life, Accident & Health exam (series 14-29) — 112 practice questions.
Subtopics: Automatic premium loan, Policy loan, Collateral assignment, Spendthrift clause, Accelerated death benefit, Interest-only settlement, Fixed-period settlement, Grace period, Incontestability, Reinstatement, Entire contract, Misrepresentation, Payment of claims, Interest on death benefits, Policy loans, Dividends, Settlement of claims, Cancellation notice for seniors, Secondary addressee, Assignment, Replacement, Long-term care riders, 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, Return of premium rider, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, Accelerated benefits, Premium modes, Free look, 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:
Uses available cash value to pay an overdue premium and prevent lapse
The automatic premium loan uses cash value to pay an unpaid premium automatically, preventing an unintended lapse.
2. A policy loan taken against a whole life policy's cash value:
Reduces the death benefit if not repaid
An unpaid policy loan plus interest reduces the death benefit and cash value at claim or surrender.
3. A collateral assignment of a life insurance policy generally:
Temporarily transfers some rights to a lender as security for a debt
A collateral assignment gives a lender a temporary, partial interest as security, leaving the owner with the remaining rights.
4. A spendthrift clause in a life insurance settlement option is designed to:
Protect proceeds from a beneficiary's creditors by limiting access
A spendthrift clause restricts a beneficiary's ability to assign proceeds and shields them from the beneficiary's creditors.
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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.
