B) payor rider d) Extended Term The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time. A young, married teacher has two children and owns a Whole Life policy. D) The original death benefit listed on the policy minus any outstanding loans and interest, C) A prorated death benefit based on the amount of insurance the insureds premiums would have been if purchased at the correct age. Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? C) suicide When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? Extended Term Past-due interest payments not paid after 3 months will void the policy C) accident If he dies, how will the adjusted death benefit be calculated? C) Incontestable clause Have a great time ahead. C) The death benefit paid will be what the premium would be purchased at the correct age All of the following are optional methods of settlement after the insured has died EXCEPT. A policy loan is made possible by which of these life insurance policy features? The length of time when the new policy will be in force will depend on the cash values available from the original policy and the age of the insured party at the time the person chooses the extended-term option. What will the insurer pay to Ps beneficiary? C) pay past due premiums, agree to new incontestable period All of the following are true of Key Employee life insurance EXCEPT a) The death benefit is free from income taxes. All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT Options a) Extended Term Insurance b) Cash Surrender c) Reducation of Premium d) Reduced Paid-Up Insurance Answer: c) Reduction of Premium A) Policy Extended Term D) Policy loans will no longer be available. The series is called All or Nothing. Or if you were 35 when you purchased your policy and you paid until you were 45, you would receive a term policy less than 10 years. \textbf{December 31, 2019} In a reduced paid-up insurance option, the policy owner receives a lower amount of payments made as premiums for the original whole life insurance. Rapid depletion of proceeds can be avoided B) the policy would be payable only after the beneficiary makes past due premium payment suicide. If Ron goes to a doctor who is not a PPO provider, what will happen? C) Term life policies are the only type of insurance that allows policy loans Some companies offer an annuity option in the nonforfeiture clause. 3. "What Are Life Insurance Non-Forfeiture Options? C) resubmit a new life insurance application The meaning of NONFORFEITURE is failure or refusal to forfeit something often used before another noun. C) Paid-up option B) Juvenile waiver Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? Ike purchases a whole life policy. The insurer will deduct the outstanding loan balance from the. Which statement is true if Ps premiums are waived due to a disability? B) Payor rider Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options? How many first time home buyers did you work with last year? What is an insurer required to do when faced with an error made under the Misstatement of Age provision? In what part of an insurance policy are policy benefits found? D) Beneficiary. Under an extended term nonforfeiture option, the policy cash value is converted to answer choices A higher face amount than the whole life policy. Opt for reduced coverage with a reduced death benefit for the remaining term of the insurance. Depending on the age of the policy, the cash surrender value could be less than theactual cash value. A) $400 He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. Both are in excellent health. All of the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT. B) Insuring provision d) Reduced Paid-Up Insurance. Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. \textbf{Rogers Coproration}\\ fixed-period option. D) Reduced Paid-Up Insurance. Whole Life Insurance: Whats the Difference? ? While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. reduced paid-up insurance. A) Grace period the policy may be paid up early by using policy dividends. Salaries and Wages Payable. The policy value, therefore, should reflect the effects of inflation upon the economy. Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? Give your reasons. D) Insured has become terminally ill. b) The key employee has premiums deducted from his salary. Which of the following is CORRECT regarding the death benefit amount? B) The policy will be voided with no death benefits paid D) is injured in a skiing accident and dies 18 months later. C) Results A counselor receives a fee for advice, and can maintain a dual license as an agent and counselor. Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply? CFI is the official provider of the global Commercial Banking & Credit Analyst (CBCA) certification program, designed to help anyone become a world-class financial analyst. D) war, An insured individual and the policys beneficiary die from the same accident. A) Waiver of premium Coverage can be added at specific ages, Evidence of insurability is required when the option is exercised. Claims are denied under the Suicide clause of the policy, Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? Paid-up additional insurance is whole life insurance that a policyholder purchases using the policys dividends. e. Equipment. A) Net death benefit will be reduced if the loan is not repaid D) any surrender charges owed by the policyowner, B) past due premiums that have not been paid by the end of the grace period. C) Policys cash value is not affected fare-paying passenger. You should now have gotten the answer to your question All of the following are nonforfeiture options, EXCEPT:, which was part of Insurance MCQs & Answers. Which of the following is NOT part of an insurance contract? N dies September 15. B) Extended term option Must have a terminal illness to qualify. When a policy is in force for a longer duration, the better the cash values and the nonforfeiture values. She died January 10 without making the premium payment. C) aviation D) Extended term rider, In a life insurance policy, the entire contract consists of, A) policy and conditional receipt What is the Suicide provision designed to do? All of the following are true regarding a decreasing term policy EXCEPT The insured's premiums will be waived until she is 21. a) Treatment payable by Medicare. Which of these arrangements allows one to bypass insurable interest laws? A) Policy Summary A) Transfer ownership of the policy Under a life insurance policy, what does the insuring clause state? James is the insured on a life insurance policy where his age was misstated on the application. 9 Q What kind of policy does NOT typically require proof of insurability? Which military service exclusion clause would pay upon his death? Instead, there are four options that the owner can choose from in order to access the accumulated cash value. What are collateral assignments normally associated with? You can learn more about the standards we follow in producing accurate, unbiased content in our. C) Dividends are always taxable B) during the last 12 months All of the following are Nonforfeiture options EXCEPT A Extended term B Reduced paid-up C Interest only D Cash surrender `````C Interest only Which statement is NOT true regarding a Straight Life policy? A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to nonpayment.. The death benefit would be equal to the benefit in the original whole life insurance policy. T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. C) Return of premium provision The policy starts generating returns by the third year, and part of the revenue goes to policy reserve, while the remaining revenue goes to cover administrative costs, agent commissions, and acquisition costs. The goal of a life insurance policy is to protect the surviving dependents of the policyholder such that, after the death of the insured person, the insurance company pays a specific sum to the named beneficiaries. If thats the case, you dont have to worry anymore. D) The policys cash values steadily decrease after 20 years, B) The policy may be paid up early by using policy dividends, A guaranteed issue insurance policy has no, A) initial premium requirement Which of these is NOT a characteristic of the Accelerated Death Benefit option? C) Nonforfeiture provision What does the insuring agreement in a Life insurance contract establish? C) completely and permanently disabled A) Reduction of premium dividend option A) Interest only M had an annual life insurance premium payment due January 1. Overall, it's the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the policy. C) Address D) the protection ends. Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are 1. Also, any outstanding amounts on the insured partys coverage are deducted from the cash value. Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake? Those on Social Security disability automatically qualify for this benefit C) Covered hazard This provision is usually provided with an increase in premium Ss attained age All of the following are standard life insurance policy nonforfeiture options EXCEPT: (A) cash surrender option(B) 1-year term insurance option(C) extended term insurance option(D) reduced paid-up (permanent) insurance option A (B) 1-year term insurance option 6 Q Which of the following statements best describes life insurance policy dividends? How is a life insurance policy dividend legally defined? All of the following are nonforfeiture options, EXCEPT. C) no beneficiary was ever named C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill Their purpose is to protect the insured's accumulated cash values in case the Whole Life or Endowment policy lapses. The nonforfeiture benefits clause allows the owner to choose full benefits or partial benefits when the premium can no longer be paid starting after a certain number of years. Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? His $100,000 Whole life policy contains a War Exclusion clause. A) dividend option B) settlement option C) nonforfeiture option D) interest-only option. Compute SYXS_{Y X}SYX and interpret your findings Compute the MADM A DMAD and interpret your findings. For each, decide whether the discrimination is reasonable and should be permitted or is unreasonable and should be prohibited. A nonforfeiture clause is an element included in standard life insurance and long-term care insurance. B) Policy loans Cash A) The face amount and policy premium are not affected by the payment B) the right to contest the terms of the policy \textbf{Unadjusted Trial Balance}\\ Which type of beneficiary is changeable at any point? The action must be brought a) Within 2 years. The Consideration clause in a life insurance policy indicates that a policyowners consideration consists of a completed application and. AzAnswer team is here with the right answer to your question. B) No interest will be charged on loan balance Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Which of these require an offer, acceptance, and consideration? An insured is past due on his life insurance premium, but is still within the Grace Period. Extended-term insurance is often thedefault non-forfeiture option. C) Cash value is surrendered to policyowner If an insured dies because of an accident, which type of life insurance rider will provide additional coverage? C) the source of funding for administration fees Charitable gift of life insurance is a way of contributing to charity by taking out life insurance on yourself and naming a charity as a beneficiary. d) Revocable Revocable beneficiares can be changed at any point. until after the adjusting entries are made? Insurance companies can send delinquent interest accounts to a collection agency The nonforfeiture benefit is designed to ensure that if you lapse your policy (i.e., stop paying premiums) after a specified number of years, you retain some benefits from the policy. S dies 1 year later of natural causes. B) Exclusion C) the outstanding policy loan balance The nonforfeiture clause may also become available when the holder of a whole life insurance policy surrenders the policy. Florida Laws and Rules Pertinent to Insurance, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Chapter 3 - Legal Concepts of the Insurance C. What will the beneficiary receive if the insured dies during this Grace Period? B) Paid-up additions D) war. Reduce your coverage for the remaining term of the policy and pay no futurepremiums. If cash has accumulated in the policy, state law forbids companies from keeping it and cancelling the policy. B) Nonforfeiture N is a student pilot with a large life insurance policy. A) The policys cost basis is taxable Deducted based on the income level. A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to nonpayment. With the extended term option, you can choose to use the cash value in a whole life insurance policy to term insurance, allowing you to stop paying premiums. f. Service Revenue. Taxable C. Nontaxable D. Tax Deductible B. How are policyowner dividends treated in regards to income tax? C) Insuring clause Usually, permanent life insurance generates low returns in the early years of the policy due to administrative and acquisition expenses. P will have to pay income taxes on the amount of premiums waived One of the questions on the application asks if P engages in scuba diving, to which P answers "No". See the bus stats for the Lincolnville School District. Life insurance policyholders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value, and paid-up insurance. Grace period terms are stated in the policy. D) the claim would be denied, A) the policy would be payable, minus the premium amount, The two major actions required for a policyholder to comply with the Reinstatement Clause are, A) provide evidence of insurability, agree to a new incontestable period A) Declarations A) Contest the terms of the policy after the issue date The restaurant hires only male wait staff. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Home Flashcards Chapter 4- Policy Provisions, Options and Riders (Exam 2), A waiver of premium rider allows an insured to waive premium payments if the insured is, A) temporarily disabled Which rider provides coverage for a child under a parents life insurance policy? How are acts of war and aviation treated under a group life insurance policy? The insurance company charges a surrender fee to the policy owner to cover expenses incurred in recording the policy in the companys books and any administrative expenses incurred. a) Both irrevocable and Revocable. For traditional whole-life policies, the policyholder decides how they would like to access the policys cash value. \text { Unearned Service Revenue } & & 11,200 \\ The insured partys coverage can be terminated automatically when the policyholder fails to make premium payments or when he/she surrenders the policy. B) Status A) Payor options C) Premium increase B) incontestable period Required fields are marked *, All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT. Quickly and professionally. Some states require a provision limiting the time parameters in which a claimant may seek recovery from an insurer under a policy. pilot of personal airplane. B) Make a premium payment after the due date without any loss of coverage Under an extended term nonforfeiture option, the policy cash value is converted to The payable premium amount steadily declines throughout the duration of the contract. The policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments. B) Cash Dividend Option Life Income. D) Grace period. What provision can Sheila add to her policy to address this concern? A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment. In order to convert the engine type (diesel or gasoline) to a qualitative variable, first add a variable. C) automatic premium loan rider Standard life insurance and long-term care insurance policies may have a nonforfeiture clause. Let us have a look at your work and suggest how to improve it! A) Period of time after the initial premium is paid and before the policy is issued D) Decreasing term insurance, A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), A) partial surrender List of Excel Shortcuts Nonforfeiture clauses offer protection in the event a policyholder stops paying their premium. D) during the last 6 months, C) minus indebtedness and without interest. reduced paid - up insurance cash value . C) Entire Contract A double indemnity benefit will be payable to Matts beneficiary if Matt, A) is killed while committing a felony 3 ingredient peach cobbler bisquick, what happened to emma in the royle family,
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