all of the following are nonforfeiture options except

D) $4,000, A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n), A) waiver of premium rider C) Incontestable clause d) The PPO will pay reduced benefits. Ron joins the PPO provided by his employer. B) Dividend option D) The policys cost basic is exempt from taxation, D) The policys cost basic is exempt from taxation. The treatment is expensive and is not covered by Elaine's health insurance. C) One-year term b) Within 3 years. For example, if you purchase a policy when you were 20 and you paid until age 55, you would receive a term policy that is less than 35 years. A) Payor options Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Whole life insurance is permanent life insurance that pays a benefit upon the death of the insured and is characterized by level premiums and a savings component. Interest only is a settlement option. B) Waiver of Premium S dies 1 year later of natural causes. Compute SYXS_{Y X}SYX and interpret your findings Compute the MADM A DMAD and interpret your findings. 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.. A) Cash surrender A Tax deductible. Use the accumulated cash value to pay the remaining future premiums. 2. C) Period of time after a policy is issued and before it is delivered to policyowner Which of the following is CORRECT regarding the death benefit amount? Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? Chapter 8 Quiz Flashcards | Quizlet The reduced life insurance coverage is calculated based on the insureds attained age, cash surrender value, and the number of premiums paid by the policy owner. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. C) automatic premium loan rider Just like with a conventional loan, youll be charged interest that could range from 5% to 9% on the loan. A policy loan is made possible by which of these life insurance policy features? Taxable *Dividends are a return of unused premiums on which the insured has already paid taxes. If D dies without making any further changes, to whom will the policy proceeds be paid to? A) Waiver of premium provision pilot of personal airplane. Annuities pay regular payments as outlined in the contract. Such an option considers the saving component of the policy. reduced paid-up insurance cash value. Forfeiture is broadly defined as the loss of property for failing to obey the law, and that property is generally lost to the state. Life Income. Assignment of ownership \text { Interest Expense } & \underline{~~~~~~~~~~4,500} &\underline{~~~~~~~~~~~~~~~~~~~} \\ C) take out a policy loan D) medical underwriting. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) policy and any verbal agreements Five years later, T commits suicide. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Which statement regarding the Misstatement of Age provision is considered to be true? S has a Whole Life policy with a premium payment due soon. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. The same face amount as in the whole life policy. C) Incontestability An error was made on Marys life insurance application. g. Income taxes of$55,539 are owed but unrecorded and unpaid. B) would not be treated as taxable income \text { Other Assets } & 60,900 & \\ C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill C) waiver of premium B) Dividend options C) Riders Life Insurance Policies - Provisions, Options and Riders - 2 Unlike conventional loans, policy loans don't necessarily need to be paid back. Which of these require an offer, acceptance, and consideration? A) Bank loans D) Life income annuity. Which statement is true if Ps premiums are waived due to a disability? What is an insurer required to do when faced with an error made under the Misstatement of Age provision? D) Family income rider. A physical inventory shows that$650 of office supplies is on hand. 40% taxable, similar to a capital gain B. 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. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. See the bus stats for the Lincolnville School District. c) The business is the owner and beneficiary of the policy. d) Alzheimer's disease While normally mental and nervous disorders or disease are excluded in long-term care policies, Alzheimer's disease is not. The beneficiary is Ds wife. Reduced paid-up insurance c. Accumulate at interest d. Extended term Answer: c. Accumulate at interest 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. Full face amount minus any past due premiums. A lower face amount than the whole life policy. The policy would retain a cash value component, but it would grow at a reduced rate. D is the policyowner and insured for a $50,000 life insurance policy. reduced paid-up insurance. Which of the following statements is true? An insurer can be protected from adverse selection with which policy provision? All of the following are optional methods of settlement after the insured has died EXCEPT life income option. D) Nonforfeiture options. Quickly and professionally. For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are 1. Both are in excellent health. Universal life (UL) insurance is permanent life insurance with an investment savings component. Paid-up Additions When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. "Standard nonforfeiture law for life insurance.". \text { Accounts Receivable } & 15,900 & \\ After reading about the changes in the government's role in the economy, write a one-page essay arguing whether you think those changes are helpful or harmful to the U.S. economy. One life insurance policy provision specifies that - Course Hero All of the following are nonforfeiture options EXCEPTo paid-up additions extended term insurance. How is a life insurance policy dividend legally defined? A) The original face amount will be paid to the beneficiary Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? Which nonforfeiture option has the highest amount of insurance protection? For traditional whole-life policies, the policyholder decides how they would like to access the policys cash value. When an accidental death benefit is added to a whole life policy, how does this affect the policys cash value? All of the following are nonforfeiture options, EXCEPT: a. What provision can Sheila add to her policy to address this concern? Long Term Care: Optional Benefits | Department of Financial Services The policy owner does not forfeit the previous payments and is entitled to receive the policys cash value. Which of the following is considered to be an alternative to a life settlement? a) Extended Term Insurance \textbf{December 31, 2019} C) the outstanding policy loan balance B) provide evidence of insurability, pay past due premiums Term vs. Which of the following is NOT a common life insurance policy rider? B) Purchase additional coverage with no evidence of insurability required Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. C) Guaranteed insurability 609.5315. The policy is then issued with no scuba exclusions. How many first time home buyers did you work with last year? Exam Review #1 Flashcards | Chegg.com Which of these provisions require proof of insurability after a policy has lapsed? A) Reduction of premium dividend option She died January 10 without making the premium payment. B) Payor rider D) war. The extended-term insurance also helps the policy owner to quit paying premiums for the original policy, but retain the equity accumulated in the policy. Proceeds can be administered by the insurance company Extended Term g. Salaries and Wages Expense L4. Life Insurance Policy Provisions Options and Riders Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. A) Interest only With the paid-up policy option, you can use your cash surrender value to buy a paid-up version of the same type of life insurance policy so you would no longer have to make premium payments. B) The policy will be voided with no death benefits paid A) Increases the policys cash value D) $4,000 D) Entire Policy, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n), A) automatic premium loan 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. C) Nonforfeiture provision B) Free-look period Under a life insurance policy, what does the insuring clause state? B) dies of a stroke B) It allows for policy loans to be advanced to the insured in the event of unemployment Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Which of these are NOT an example of a Nonforfeiture option? One type of life insurance is a nonparticipating whole life policy in which cash values are based on the insurer's present mortality, investment, and expense experience. A nonforfeiture clause is an insurance policy clause that is included in standard life insurance and long-term care insurance. C) no beneficiary was ever named A) $400 The above question All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT, Was part of Insurance MCQs & Answers. C) reduction in policy premium Asset Forfeiture Laws by State - FindLaw She can reestablish coverage under which of the following provisions? B) The insurers obligation to return all premiums upon an approved death claim The extended-term payout option allows the policy owner to buy an extended-term policy using the cash values from the original policy. The interest earned on policy dividends is A. Extended-term insurance is often thedefault non-forfeiture option. After a policy has lapsed, which provision allows the insured to continue coverage? B) Nonparticipating policies issue dividends C) accelerated benefit rider B) Buyers Guide Insurers require policyholders to have paid at least three years of premiums before they can be eligible for paid-up insurance. Elaine was diagnosed with a terminal illness. Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. d) The key employee is the insured. e. Wages in the amount of $3,450 are owed but unpaid and unrecorded at year end. C) resubmit a new life insurance application b) The key employee has premiums deducted from his salary. Interest only is a settlement option. The insurance company guarantees a minimum cash value for the insurancepolicy after a specific period, typically three years from when the policy starts. D) Cash surrender. Bruce is involved in an accident and becomes totally and permanently disabled. Accumulation at Interest P will still receive declared dividends When a life insurance policy is surrendered, how does the cost recovery rule apply? A) Policy Summary This value is payable before death. The owner gets the cash surrender value in cash, either partially or in full. B) war Opt for reduced coverage with a reduced death benefit for the remaining term of the insurance. \text { Wages Expense } & 137,000 & \\ Why would you not want to prepare financial statements D) Leave, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n), A) guaranteed term rider Which of the following statements is TRUE? An insurance contract must contain all of the following to be considered legally binding EXCEPT a) Consideration b) Competent parties c) Beneficiary's consent d) Offer and Acceptance. The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain . C) Pay full benefits as stated in the policy When the term insurance expires, A) he has the option of resuming the original policy and paying the same premium Modify a provision in the insurance contract Loans obtained by a policyowner against the cash value of a life insurance policy A whole life policy option where extended term insurance is selected is called a. D) war. D) provide a valid reason for the lapse, B) provide evidence of insurability to the insurer. B) The insurer withholds the cost basis c. Inventory. d) The PPO will pay reduced benefits. Which situation accurately describes a reduced paid-up nonforfeiture option? Past-due interest on a policy loan is added to the total debt A) Net death benefit will be reduced if the loan is not repaid Flashcards - life policy provisions A) No death benefit is owed because of the misstatement of age A) extended term He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. D) the protection ends. D) Reduced Paid-Up Insurance. D) beneficiary assignment, Mike and Ike are 30 year old identical twins. It is not taxable C) nonforfeiture option Policy loans may still be made a) Conversion b) Decreasing Term c) Reduced Paid-up d) Extended Term. B) Make a premium payment after the due date without any loss of coverage B) settlement option D) A loan can be taken out for up to the face amount of the policy, A) Net death benefit will be reduced if the loan is not repaid, Life insurance policies will normally pay for losses arising from, A) commercial aviation A) Reinstatement clause B) Status 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. How much will Ds beneficiarys receive? However, any money you take out will be deducted from the death benefit that goes to your beneficiaries. P died five years after purchasing a life policy. B) the coverage can be extended with a lump sum payment c) Reducation of Premium 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. Some states require a provision limiting the time parameters in which a claimant may seek recovery from an insurer under a policy. Change the beneficiary, if revocable, Modify a provision in the insurance contract. 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. b) Variable life Because variable life policies invest in the insurer's separate accounts and allow the policyowner to choose specific investment strategies, the interest rates will fluctuate depending upon the performance of the investments. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? How much will the insurer pay? The cash surrender value will also be reduced by any outstanding loan amount. C) Covered hazard Which life policy is designed to provide the policyowner a hedge against the effects of inflation? A) Grace period In what part of an insurance policy are policy benefits found? D) Policy loans will no longer be available. She has been working in the financial planning industry for over 20 years and spends her days helping her clients gain clarity, confidence, and control over their financial lives. B) Reinstatement provision 3. Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? Amount of premium payments and when they are due. Chapter 3 - Life Policy provisions, riders, and option - Chegg B) Paid-up additions The policyis calculatedfrom the insureds attained age. A) Active Which of these is NOT a characteristic of the Accelerated Death Benefit option? 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. N dies September 15. I hope you got the correct answer to your question. AzAnswer team is here with the right answer to your question. B) automatic premium loan All of the following are optional methods of settlement after the insured has died EXCEPT. B) Extended term insurance In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy? C) Settlement options B) the policy would be payable only after the beneficiary makes past due premium payment Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. C) Annuity rider C) Return of premium provision Mike buys a 10-year renewable term policy. B) guaranteed insurability rider B) accumulate without interest D) war, An insured individual and the policys beneficiary die from the same accident. B) 1/2 of the policys face amount B) Application A) The policy may be paid up early by using accumulated cash values reduction of premium Which situation accurately describes a reduced paid-up nonforfeiture option? C) Extended term option a The premiums on their policy will never increase. C) Suicide clause d. What price range is your specialty? A) Reduction of premium C) A return of excess premium and not taxable The Consideration clause in a life insurance policy indicates that a policyowners consideration consists of a completed application and. One of the questions on the application asks if P engages in scuba diving, to which P answers "No". Which of these would limit a companys liability to provide insurance coverage? a) The PPO won't pay any benefits b) Ron will have to pay a higher deductible c) The PPO will pay the same benefits as if Ron had seen a PPO physician. Ss attained age What action will the insurer take? C) Insuring clause B) during the last 12 months Which of these is NOT a characteristic of the Accelerated Death Benefit option? C) A prorated death benefit based on the amount of insurance the insureds premiums would have been if purchased at the correct age A) Reinstatement D) Decreasing term insurance, A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), A) partial surrender A) 12/15th of the policys face amount \text { Prepaid Rent } & 9,500 & \\ C) Return of premium D) Guaranteed Insurability, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policys inception, the insurer will only be liable for a return of premiums paid, A) minus indebtedness and with interest Her doctor said that her only chance of survival is an experimental treatment. 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. Extended Term When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? The amount of cash value you will have built-in your policy will be reduced by the amount of any loans against your life insurance. 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? A) Incontestable period

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