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Xcel solutions chapter 3 - policy provisions Questions and Answers 2024
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Xcel solutions chapter 3 - policy provisions
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Xcel solutions chapter 3 - policyprovisions
A potential client, age 40, would like to purchase a whole life policy that will accumulate
cash value at a faster rate in the early years of the policy. Which of these statements
made by the producer would be correct? - answer20-pay life accumulates cash value
faster than straight life
D owns a whole life policy that was purchased 10 years ago. If the premium payment
suddenly stop and D takes no additional action, which nonforfeiture option will be
insurer likely proceed with? - answer Extended term
D is the policy owner and insured for a $50,000 life insurance policy. The beneficiary is
D's wife. D and his wife divorce and D Remarries, transferring ownership of his policy to
his new wife. If D Dies without making any further changes, I home will the policy
proceeds to say to? - answer Ex-Wife
Which of these NOT an example nonforfeiture option? - answer Life income
Which of these life insurance riders allows to applicant to have access coverage -
answerTerm rider
Typically a life insurance death benefit is paid by lump sum payment. A ______ option
is a method of distributing a life insurance policies death benefit other than Buy a lump
sum payment - answerSettlement
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called - answerAccidental death and dismemberment rider
The incontestable clause allows the insurer to - answerContest a claim during the
contestable period
S has a whole life policy with the premium payment due soon. 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 - answerAutomatic
policy loan
Which of the following is an example of a nonforfeiture option - answerReduced paid up
option
, The agreement in a life insurance contract that states a specific sum of money will be
paid to a designated person upon a insureds death is called - answerInsuring
agreement
P is blinded in an industrial accident. Which provision of his life insurance policy will pay
a stated benefit amount? - answerAccidental death and dismemberment clause
When is the face amount of a whole life policy paid - answerWhen the insured dies or at
the policies maturity date which ever happens first
L takes out a life insurance policy and dies 10 years later. During the claim process, the
insurer discovers that L had understated her age on the application. Under the
misstatement of age provision, the insurer will - answerAdjust the death benefit to a
reduced amount
When an insurer issues a policy that refuses to cover certain risk, this is referred to as a
- answerExclusion
M had a annual life insurance premium payment due January 1 she died January 10
without making the premium payment what action will the insurer take - answerPay face
amount minus the past due premium
A cost of living rider gives the insured - answerAdditional death benefits
Who's life is covered on a life insurance policy that contains a payer benefit clause -
answerChild
What does the insuring agreement in a Life insurance contract establish - answerAn
insurer's basic promise
How do a life insurance companies handle cases where the insured commits suicide
within the contract's stated contestable period? - answerClaims are denied under the
suicide clause of the policy
N is covered by term life policy and does not make the required premium payment
which was due August 1. N die September 15 what action will the insurer take? -
answerClaim will be denied
S would like to use dividends from her life insurance policy to purchase paid up
additions. All of these would be factors that determine how much coverage can be
purchased except - answerBeneficiary's age
Additional coverage can be added to a whole life policy by adding a - answerDecreasing
term rider
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