Free Life Policy Provisions Options and Riders Practice Questions
West Virginia Life, Accident & Health exam — 108 practice questions.
Subtopics: Policy dividends, Revocable beneficiary, Estate as beneficiary, Replacement definition, Financed purchase, Replacement statement, Replacement notice, Sales materials, Notice to existing insurer, Replacement free look, Existing insurer duties, Replacement exemptions, Replacement violations, Pattern evidence, Same-company replacement, Replacement records, Replacement penalties, Creditor protection, Group life creditors, Collateral assignment, Simultaneous death, Policy loan interest, Loan deferral, Adjustable loan rate, Policy loan termination, Dividend apportionment, Dividend option election, Misstatement of age, Death claim settlement, Interest on death claims, Incontestability and exclusions, Permitted exclusions, Contest after reinstatement, Standard provisions, Assignment, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Dividend options, Riders, Grace period, Reinstatement, Incontestable clause, Suicide clause, Primary beneficiary, Irrevocable beneficiary, Minor beneficiary, Per capita, 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, Incontestability, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, 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. Dividends paid on a participating whole life policy are best understood as:
A non-guaranteed return of part of the premium
Participating policies must apportion divisible surplus annually, if any, beginning no later than the end of the third policy year; dividends are not guaranteed.
2. A revocable beneficiary designation means the policyowner may:
Change the beneficiary without the beneficiary's consent
A revocable beneficiary can be changed at any time by the owner without the beneficiary's consent, unlike an irrevocable designation.
3. If life insurance proceeds are payable to the insured's estate, the proceeds generally:
May be subject to probate and the insured's creditors
West Virginia protects proceeds payable to a beneficiary other than the insured or the insured's executors from the insured's creditors; proceeds payable to the estate lose that protection and pass through probate.
4. Under West Virginia's replacement rule, which transaction is a replacement?
Buying a new policy while converting the old one to reduced paid-up insurance
A replacement occurs when a new policy is purchased and an existing policy is lapsed, surrendered, converted to reduced paid-up or extended term, amended to reduce benefits, reissued with less cash value, or used in a financed purchase.
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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.
