#1
Which of the following is NOT a provision typically found in a life insurance policy?
Cash Surrender Value
ExplanationCash surrender value is a provision typically found in a life insurance policy.
#2
Which provision in a life insurance policy allows the policyholder to change the beneficiary designation?
Beneficiary Provision
ExplanationBeneficiary provision permits policyholder to alter beneficiary designation.
#3
Which of the following is NOT a factor typically considered in determining the cost of life insurance?
Marital Status
ExplanationMarital status is not typically considered in determining the cost of life insurance.
#4
Which of the following is NOT typically considered when determining the insurability of an individual for life insurance?
Credit score
ExplanationCredit score is not typically considered in determining life insurance insurability.
#5
What does the term 'face amount' refer to in a life insurance policy?
The amount payable to the beneficiary upon the insured's death
ExplanationFace amount is the sum payable to beneficiary upon insured's death.
#6
What does the suicide clause in a life insurance policy usually state?
The insured's beneficiaries will not receive the death benefit if the insured commits suicide within a specified period after policy issuance.
ExplanationSuicide clause stipulates that beneficiaries won't receive death benefit if insured commits suicide within a certain period.
#7
What is the purpose of the grace period provision in a life insurance policy?
To provide a period after the premium due date during which the policy remains in force despite non-payment of premium.
ExplanationGrace period allows policy to remain active after premium due date despite non-payment.
#8
Which of the following is an example of a policy dividend option?
Cash Option
ExplanationCash option is a policy dividend option.
#9
What is the purpose of the reinstatement provision in a life insurance policy?
To allow the policyholder to reinstate a lapsed policy without evidence of insurability.
ExplanationReinstatement provision enables policyholder to revive lapsed policy without proving insurability.
#10
Which of the following is an example of a life insurance policy rider?
Accidental Death Benefit Rider
ExplanationAccidental death benefit rider is a type of life insurance policy rider.
#11
What does the incontestability clause in a life insurance policy typically stipulate?
The insurance company cannot contest the validity of the policy after a certain period of time.
ExplanationIncontestability clause prevents insurer from challenging policy validity after a specified time.
#12
In a life insurance policy, what does the incontestability period refer to?
The period after which the insurance company cannot contest the validity of the policy due to misrepresentation or concealment.
ExplanationIncontestability period is the time after which insurer cannot dispute policy validity due to misrepresentation.