b) Cash Surrender B) Extended term insurance 350 Flashcards | Chegg.com Of the following dividend options, which of these is taxable? Required fields are marked *, All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT. However, any money you take out will be deducted from the death benefit that goes to your beneficiaries. D) Make a policy loan interest payment after the due date without any loss of coverage, B) Make a premium payment after the due date without any loss of coverage. Also, the amount of reduced paid-up or extended-term insurance may decrease if a policys sub-account performance is poor or credited interest rates are low. At year end, you have the following data for adjustments: a. She died January 10 without making the premium payment. If a policy owner has continually made premium payments for a sufficient amount of time, a forfeiture clause might become active in one of two ways. D) Policy loans will no longer be available. All of these would be factors that determine how much coverage can be purchased EXCEPT C) A return of excess premium and not taxable b) Interest only Nonforfeiture values include cash surrender, extended term and reduced paid-up. When the term insurance expires, A) he has the option of resuming the original policy and paying the same premium 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? B) Insured becomes totally disabled The extended-term payout option allows the policy owner to buy an extended-term policy using the cash values from the original policy. B) would not be treated as taxable income An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? An insured is past due on his life insurance premium, but is still within the Grace Period. B) Waiver of premium If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? B) The insurers obligation to return all premiums upon an approved death claim B) Policy loans 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 B) the policy would be payable only after the beneficiary makes past due premium payment Under the Misstatement of Age provision, the insurer will, adjust the death benefit to a reduced amount, The incontestable clause allows an insurer to, contest a claim during the contestable period. B) waiver of premium A) The policys cost basis is taxable D) The benefit can be offered as a rider at a specific extra cost or may be at no cost, D) The benefit can be offered as a rider at a specific extra cost or may be at no cost. The Consideration clause in a life insurance policy indicates that a policyowners consideration consists of a completed application and. 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? 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 B) the death benefit B) Purchase additional coverage with no evidence of insurability required D) hazardous jobs, A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n), A) insuring clause B) Reinstatement provision PracticeTest Flashcards by Gabriel Martinez | Brainscape Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake? Who does the sub-agent represent? D) the right to return the policy for a full refund within a specified number of days, D) the right to return the policy for a full refund within a specified number of days, The double indemnity provision in a life insurance policy pertains to an insureds death caused by a(n), A) sickness Which of these Nonforfeiture Options continue a build-up of cash value? An error was made on Marys life insurance application. c) Reducation of Premium A Tax deductible. reduced paid - up insurance cash value . How are acts of war and aviation treated under a group life insurance policy? The policyis calculatedfrom the insureds attained age. Life Income, All of the following statements are true regarding a policys Grace period EXCEPT B) Status c) The business is the owner and beneficiary of the policy. B) Exclusion Ss attained age a. Who the policyowner is and what rights the policyowner is entitled to. c) Beneficiary's consent The four essential elements of all legal contracts are offer and acceptance, consideration, competent parties, and legal purpose. D) It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. A life insurance policy can be surrendered for its cash value under which policy provision? 2003-2023 Chegg Inc. All rights reserved. Which of the following is CORRECT regarding the death benefit amount? Past-due interest payments not paid after 3 months will void the policy The same face amount as in the whole life policy. C) Settlement options B) provide evidence of insurability, pay past due premiums RogersCoprorationUnadjustedTrialBalanceDecember31,2019, AccountDebitCreditCash$3,100AccountsReceivable15,900Supplies4,200PrepaidRent9,500Equipment625,000AccumulatedDcprcciation$104,000OtherAssets60,900AccountsPayable9,400UnearnedServiceRevenue11,200NotePayable(due2022)50,000CommonStock279,500RetainedEarnings,12/31/201837,000ServiceRevenue598,000WagesExpense137,000RentExpense229,000InterestExpense4,500Totals$1,089,100$1,089,100\begin{array}{lrr} Which of the following is considered to be an alternative to a life settlement? The automatic premium loan provision is designed to, All of these statements concerning Settlement Options are true EXCEPT 609.5315. D) juvenile waiver rider, If an insured dies during the grace period with no premiums paid, A) the policy would be payable, minus the premium amount B) Face amount of the new policy equals that of the original policy Extended Term Evidence of insurability is not required when the option is exercised Which life insurance policy provision will permit Elaine to use the life insurance proceeds before she dies to pay for her medical care? B) during the last 12 months If an insureds age on a life insurance policy has been misstated, what is the insurers liability if the insured dies? D) Premium decrease. B) pilot of personal airplane A) Reinstatement A Medicare Supplement policy must provide coverage for pre-existing conditions after the policy has been in force for a) 1 year b) 2 years c) 90 days d) 6 months. B) A return of excess of premium and fully taxable Insured must be eligible for Social Security disability for claim to be accepted $100,000, L takes out a life insurance policy and dies 10 years later. 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. 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. I. A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT. Variable Whole Life Insurance can be described as. C) Paid-Up Additions Option Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. C) all remaining cash values are paid to the policyowner How are surrender charges deducted in a life policy with a rear-end loaded provision? Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? D) Grace period. Let us have a look at your work and suggest how to improve it! Tax deductible. Under an extended term nonforfeiture option, the policy cash value is converted to answer choices A higher face amount than the whole life policy. B) Dividend options Work with our consultant to learn what to alter, Chapter 4- Policy Provisions, Options and Riders (Exam 2). If D dies without making any further changes, to whom will the policy proceeds be paid to? \textbf{Unadjusted Trial Balance}\\ Which of these are NOT an example of a Nonforfeiture option? A) Insured becomes unemployed Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. Insurance companies can charge an interest rate based on the policyowners credit report, Past-due interest on a policy loan is added to the total debt. The policy owner does not forfeit the previous payments and is entitled to receive the policys cash value. Cash Surrender, A Return of Premium life insurance policy is. a) The company b) The insured c) The agent d) The counselor. The insurer will deduct the outstanding loan balance from the. until after the adjusting entries are made? Which of these is an element of a Variable Life policy? His insurance policy continues in force without payment of further premiums. Chapter 3.2 - Subjecto.com D) during the last 6 months, C) minus indebtedness and without interest. Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, Cryptocurrency & Digital Assets Specialization (CDA), Business Intelligence Analyst Specialization, Commercial Banking & Credit Analyst (CBCA), National Association of Insurance Commissioners (NAIC), Financial Planning & Wealth Management Professional (FPWM). 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. Under which nonforfeiture option will permanent life insurance coverage be in force after the nonforfeiture option is exercised? B) Decreases the policys cash value All of the following are Nonforfeiture Options EXCEPT Accounting MCQs In permanent life insurance, the policyholder will not lose the life insurance policy entirely. B) automatic premium loan When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately?
