Arkansas Insurance Exam for Life & Health: Policy
Provisions, Riders, & Options With 100% CORRECT
ANSWERS
Terms in this set (98)
Which of the following factors determines the D
amount of each installment paid in a Life Income The recipient's life expectancy and the amount of principal determine the amount of each
Option arrangement? installment paid in the Life Income Option arrangement.
AProjected income
BRecipient's health and death benefits
CProjected life insurance and health insurance
DRecipient's life expectancy and amount of
principal
An insured receives an annual life insurance D
dividend check. What term best describes this The cash option allows an insurer to send the policyholder an annual, nontaxable dividend
arrangement? check.
AReduction of Premium
BAnnual Dividend Provision
CAccumulation at Interest
DCash option
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A provision in a life insurance policy that D
provides for the early payment of some portion The accelerated payment can be made in a lump sum or in monthly installments over a special
of the policy face amount should the insured period of time. This provision is given without an increase in premium. Some companies,
suffer from a terminal illness or injury is called however, deduct an interest charge from the proceeds paid out to make up for their loss
AViatical Settlement provision. earnings.
BAutomatic premium loan provision.
CWaiver of maturity provision.
DAccelerated Benefit provision.
Which of the following applies to the free look D
privilege? A policyowner may return a policy, for any reason, during the free look period and receive a
AIt allows the insured 10 days to pay the initial full refund.
premium.
BIt can be waived only by the insurance
company.
CIt is granted only at the option of the agent.
DIt permits the insured to reject the policy with a
full refund.
Which two terms are associated directly with the D
premium? A level premium is one in which the premium payment never changes. A flexible premium is
AFixed or variable found in Universal life policies where the insured changes their premium payment.
BTerm or permanent
CRenewable or convertible
DLevel or flexible
Which provision of a life insurance policy states C
the insurer's duty to pay benefits upon the death The insuring clause states that the insurer agrees to provide life insurance for the named
of the insured, and to whom the benefits will be insured which will be paid to a designated beneficiary when proof of loss is received by the
paid? insurer. It states the party to be covered by the policy and names of the beneficiary who will
ABeneficiary clause receive the policy proceeds in the event of the insured's death. If no beneficiary is named, the
BConsideration clause policy proceeds will be paid to the insured's estate.
CInsuring clause
DEntire contract clause
Arkansas Insurance Exam for Life & Health: Policy Provisions, Riders, & Options
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