D) Conditions. \textbf{Rogers Coproration}\\ \text { Supplies } & 4,200 & \\ B) Make a premium payment after the due date without any loss of coverage Which of the following statements is CORRECT about accelerated death benefits? However, during the early years of awhole life insurance policy, the savings portion brings little return compared to thepremiumspaid. The nonforfeiture benefits clause allows the owner to choose full benefits or partial benefits when the premium can no longer be paid starting after a certain number of years. In order to project a classy image, an expensive seafood restaurant requires that its servers wear tuxedos . When a life insurance policy is surrendered, how does the cost recovery rule apply? B) dies of a stroke Standard life insurance and long-term care insurance policies may have a nonforfeiture clause. a) Both irrevocable and Revocable. Which of the following is CORRECT regarding the death benefit amount? How much will the insurer pay the beneficiary? D) Waiver of premium, An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n), A) attachment A) Bank loans B) guaranteed insurability rider Set the qualitative parameters if the engine type is gasoline. dividend amount used toward purchase C) Incontestability C) Policys cash value is not affected How much do I qualify to borrow? Which of these is NOT considered to be a common life insurance nonforfeiture option? Bruce is involved in an accident and becomes totally and permanently disabled. automatically add the amount of interest due to the loan balance. C) There may be a dollar limit on the maximum benefit Which of these would limit a companys liability to provide insurance coverage? Taxable *Dividends are a return of unused premiums on which the insured has already paid taxes. The common disaster provision states the insurer will continue as if, A) the insured outlived the beneficiary D) would be subject to a Federal estate tax, B) would not be treated as taxable income, The free-look provision gives the policyowner, A) the right to return the policy for a partial refund within a specified number of days Dorian exercised a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. 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. Azanswer team is here with the correct answer to your question. A) Policy In a reduced paid-up insurance option, the policy owner receives a lower amount of payments made as premiums for the original whole life insurance. 609.5315. Under which nonforfeiture option will permanent life insurance coverage be in force after the nonforfeiture option is exercised? D) grace period. C) Paid-up option D) Certificate of Authority, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, A) cash outlay to the policyowner $50,000 minus any outstanding policy loans. 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) policy and any verbal agreements 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. Which of these would be considered a Limited-Pay Life policy? N dies September 15. A) Period of time after the initial premium is paid and before the policy is issued 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. A) Increases the policys cash value D) Decreasing term insurance, A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), A) partial surrender Learn how policy loans work and about their risks. \text { Retained Earnings, 12/31/2018 } & & 37,000 \\ Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. Meanwhile, theequity you built is used to purchase a term policy that equals the number of years you paid premiums. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. B) Extended term option See the bus stats for the Lincolnville School District. pilot of personal airplane. Which situation accurately describes a reduced paid-up nonforfeiture option? D) supplement. 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? 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. C) Cash value is surrendered to policyowner C) Address Elaine was diagnosed with a terminal illness. Interest only is a settlement option. The owner gets the cash surrender value in cash, either partially or in full. Some companies offer an annuity option in the nonforfeiture clause. One life insurance policy provision specifies that the insurer cannot deny payment to the beneficiary because of concealment or misrepresentation if the life insurance policy has been in force for two years during the insured's lifetime. A young, married teacher has two children and owns a Whole Life policy. 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. In order to convert the engine type (diesel or gasoline) to a qualitative variable, first add a variable. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? B) would not be treated as taxable income a The premiums on their policy will never increase. B) the coverage can be extended with a lump sum payment What provision can Sheila add to her policy to address this concern? D) the protection ends. B) Dividend options C) Provides for the early payment of some portion of the policy face amount should be insured suffer from a terminal illness Before issuing payment to the policy owner, outstanding loan amounts are satisfied with the cash value. A) Accidental death rider D) Policy loans will no longer be available. Discover your next role with the interactive map. Which of the following is CORRECT regarding the death benefit amount? C) reduction in policy premium B) Dividend option D) war. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. How are policyowner dividends treated in regards to income tax? Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. This provision is called a(n). When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? B) The insurer withholds the cost basis The insurer will deduct the outstanding loan balance from the. A) Reinstatement clause A) The agents obligation to provide the proper amount of coverage beneficiarys age, M has an insurance policy that also has an outstanding policy loan at the time of Ms death. C) Ike will have a level premium B) the right to contest the terms of the policy b) The key employee has premiums deducted from his salary. What is the purpose for having an accelerated death benefit on a life insurance policy? "What Are Life Insurance Non-Forfeiture Options? C) all remaining cash values are paid to the policyowner What action will the insurer take? Which of these is considered to be a Living Benefit option in a life insurance policy? A) Waiver of premium provision A) Waiver of premium Overall, it's the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the policy. A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? \text { Account } & \textbf { Debit } & \textbf { Credit } \\ c) The business is the owner and beneficiary of the policy. Which policy provision is responsible for this? The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiumspaid beforethe policy lapses. A counselor receives a fee for advice, and can maintain a dual license as an agent and counselor. Individual insurance 2. 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. Cash surrender value applies to the savings element of whole life insurance policies. A) Insured becomes unemployed Policyholders can choose to access the policy's cash value through cash . Increased proceeds can be provided through accumulation of interest 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. \text { Prepaid Rent } & 9,500 & \\ The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. C) Reinstatement period fare-paying passenger. Why would you not want to prepare financial statements d) Extended Term The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time. c. What is your commission? Which of the following is a restatement condition? D) provide a valid reason for the lapse, B) provide evidence of insurability to the insurer. A) Reduce premium S dies 1 year later of natural causes. 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. How are surrender charges deducted in a life policy with a rear-end loaded provision? C) suicide Reduced Paid-Up What is an insurer required to do when faced with an error made under the Misstatement of Age provision? A sub-agent cannot take or sign an application. b. C) automatic premium loan rider 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. D) Insured has become terminally ill. C) Accidental Death Rider f. Six months interest at 8% on the note was paid on September 30. Plot the fitted values on the horizontal axis and the residuals on the vertical axis. Life insurance is a contract in which an insurer, in exchange for a premium, guarantees payment to an insureds beneficiaries when the insured dies. A) Accumulation at Interest Option Insured must be eligible for Social Security disability for claim to be accepted ? C) transferable assignment C) Extended term insurance Which of these is NOT a type of agent authority? A) Payor options Cash Surrender D) Monthly income payments. Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake? S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. A) A return of excess premium and partially taxable D) Bill the policyowner for back premiums. Deducted based on the income level. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Which life policy is designed to provide the policyowner a hedge against the effects of inflation? A) Contest the terms of the policy after the issue date C) Allows for a full refund after policy delivery The length of time when the new policy will be in force will depend on the cash values available from the original policy and the age of the insured party at the time the person chooses the extended-term option. the death benefit paid will be what the premium would have purchased at the correct age. To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. B) The policy will be voided with no death benefits paid A) Long-term care rider Cash surrender value is the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the policy.
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