B) Decreases the policys cash value Term vs. 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. B) The full original death benefit listed on the policy XCEL Chapter 4 Part 2 Flashcards | Quizlet Which of these would limit a companys liability to provide insurance coverage? If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options? Or if you were 35 when you purchased your policy and you paid until you were 45, you would receive a term policy less than 10 years. With maintenance cost as the dependent variable and age, odometer miles, miles since last maintenance, and engine type as the independent variables, create a regression equation using statistical software by setting variable to 1. Extended Term Cash surrender value b. In personum actions are against the owner of property, whereas in rem actions are taken . D) A dividend option is selected by the insured at the time of policy purchase, D) A dividend option is selected by the insured at the time of policy purchase. Learn how policy loans work and about their risks. Which of the following statements is (are) true regarding life insurance policyowner dividends? reduction of premium Which situation accurately describes a reduced paid-up nonforfeiture option? b) Interest only Nonforfeiture values include cash surrender, extended term and reduced paid-up. Increased proceeds can be provided through accumulation of interest The above question All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT, Was part of Insurance MCQs & Answers. A) Accumulation at Interest Option The policy would retain a cash value component, but it would grow at a reduced rate. Which provision will pay a portion of the death benefit prior to the insureds death due to a serious illness? a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. These options include: If the policyholder does not choose any of the above options after the policy is terminated or surrendered, the insurance company will go for the payout option stipulated in the life insurance policy of the owner. The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insureds death is called a(n), Which of these is NOT considered to be a right given to a policyowner? All of the following are nonforfeiture options EXCEPTo paid-up additions extended term insurance. 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 Learn how it works. Forfeiture (law) - Wikipedia What will the insurer pay to Ps beneficiary? How are acts of war and aviation treated under a group life insurance policy? The common disaster provision states the insurer will continue as if, A) the insured outlived the beneficiary Which nonforfeiture option has the highest amount of insurance protection? B) 1/2 of the policys face amount Which of the following statements is true? d) Revocable Revocable beneficiares can be changed at any point. \text { Wages Expense } & 137,000 & \\ B) Probation period This provision is usually provided with an increase in premium What is the name of the provision which states that a copy of the application must be attached to the policy when issued? S dies 1 year later of natural causes. C) Pay full benefits as stated in the policy B) policy and all sales material I. Reduce your coverage for the remaining term of the policy and pay no futurepremiums. D) experiencing financial hardship. C) Endowment rider a The premiums on their policy will never increase. D) Automatic premium loans, The automatic premium loan provision authorizes an insurer to withdraw from a policys cash value the amount of, A) any interest payable from an outstanding policy loan balance What is an insurance policys grace period? This value is payable before death. D) Mandatory provision, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST, A) remit all past-due premiums within the grace period A) Proof of insurability If thats the case, you dont have to worry anymore. Set the qualitative variable to 0 if the engine type is a diesel. You dont have to worry about it anymore. a) Modified life b) Variable life c) Ordinary life d) Graded premium whole life. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? The death benefit would be equal to the benefit in the original whole life insurance policy. A) Period of time after the initial premium is paid and before the policy is issued Which statement regarding the Misstatement of Age provision is considered to be true? B) The insurer withholds the cost basis His insurance policy continues in force without payment of further premiums. Insurers require policyholders to have paid at least three years of premiums before they can be eligible for paid-up insurance. 90 percent of forfeiture proceeds go to law enforcement, Law enforcement required to report forfeitures to the state auditor on a monthly basis, and the auditor must then make annual reports to the state Legislature. D) Allows the insured to convert a term life policy to whole life with no evidence of insurability, B) Purchase additional coverage with no evidence of insurability required, Loans obtained by a policyowner against the cash value of a life insurance policy, A) are treated as taxable income B) The insurers obligation to return all premiums upon an approved death claim Five years later, T commits suicide. Modify a provision in the insurance contract The following are the payout options outlined in the nonforfeiture clause of a whole life insurance policy: If a policy owner chooses the cash surrender value option, the insurer will pay the remaining cash value within six months. A) No death benefit is owed because of the misstatement of age Also, any outstanding amounts on the insured partys coverage are deducted from the cash value. B) Waiver of premium In what part of an insurance policy are policy benefits found? D) is injured in a skiing accident and dies 18 months later. B) Free-look period computer. P cannot borrow against the policys cash value while disabled Suppose the first residual is 12.0(instead of 2.0 ) and the last residual is -11.0(instead of -1.0). D is the policyowner and insured for a $50,000 life insurance policy. c. Inventory. What are collateral assignments normally associated with? Accounting Cycle and Classifying Accounts, Adjusting Accounts for Financial Statements, Asset Demand and Supply under Uncertainty, Business Analytics & Technology Management Chapter 2, Business Analytics & Technology Management Chapter 3, Business Analytics & Technology Management Chapter 4, Business Analytics & Technology Management Chapter 5, Business Analytics & Technology Management Chapter 6, Capital Budgeting and Managerial Decisions, Derivative Instruments and Hedging Activities, External Financial Statements and Revenue Recognition, Financial Intermediaries and Financial Markets, Financial Markets and Securities Offerings, Financial Statements and Accounting Transactions, Integrated Marketing Communications and Direct Marketing, Interactive Marketing and Electronic Commerce, Interpersonal and Organizational Communication, Introduction to Human Resource Management, Introduction to Human Resources Assessment, Managerial Accounting Concepts and Principles, Market Segmentation Targeting and Positioning, Organization and Operation of Corporations, Organizational Markets and Buyer Behaviour, Profitability Analysis and Analytical Issues, Profitability Analysis and Decentralization, Reporting and Analyzing Long Lived Assets, Responsibility Accounting and Performance Measures, Understanding Interest Rates Determinants. Bruce is involved in an accident and becomes totally and permanently disabled. Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? In order to convert the engine type (diesel or gasoline) to a qualitative variable, first add a variable. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. C) minus indebtedness and without interest Some companies offer an annuity option in the nonforfeiture clause. Never tax deductible. B) Reduced paid-up insurance B) Cash Dividend Option A) A return of excess premium and partially taxable C) Results cash (lump sum). C) completely and permanently disabled All of the following are Nonforfeiture Options EXCEPT Cash Surrender Option Extended Term Option Reduced Paid-Up Option Automatic Premium Loan Option Related MCQs ? C) A prorated death benefit based on the amount of insurance the insureds premiums would have been if purchased at the correct age Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. reduced paid-up insurance. Thanks for choosing us. She is concerned, however, that if she becomes disabled she will be unable to pay the premiums as they come due. d) Extended Term The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time. D) Certificate of Authority, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, A) cash outlay to the policyowner List of Excel Shortcuts C) Accidental Death Rider What time period allows an insureds life insurance policy to remain in force even if the premium was not paid on the due date? What Is Charitable Gift of Life Insurance? For example, if you purchase a policy when you were 20 and you paid until age 55, you would receive a term policy that is less than 35 years. PDF Long-term Care Insurance "What Are Life Insurance Non-Forfeiture Options? A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT. a) The company b) The insured c) The agent d) The counselor. Which of these life insurance riders allows the applicant to have excess coverage? All of the following are optional methods of settlement after the insured has died EXCEPT. B) aviation D) provide a valid reason for the lapse, B) provide evidence of insurability to the insurer. Just like with a conventional loan, youll be charged interest that could range from 5% to 9% on the loan. Waiver of Premium is available on both permanent and term insurance policies Whole life insurance is permanent life insurance that pays a benefit upon the death of the insured and is characterized by level premiums and a savings component. 609.5315. Nonforfeiture Benefits for Life Insurance | Life Benefits When the insured dies or at the policys maturity date, whichever happens first, The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called, All of these statements about the Waiver of Premium provision are correct EXCEPT Meanwhile, theequity you built is used to purchase a term policy that equals the number of years you paid premiums. a. Prepaid Rent. It is taxed as capital gains Which of the following is considered to be an alternative to a life settlement? A) Cash surrender ? Which policy provision is responsible for this? B) Insuring provision A) Reduction of premium dividend option Usually, permanent life insurance generates low returns in the early years of the policy due to administrative and acquisition expenses. This provision is the, All of the following are nonforfeiture options EXCEPT. Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. C) Cash value is surrendered to policyowner Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. Let us have a look at your work and suggest how to improve it! James is the insured on a life insurance policy where his age was misstated on the application. Life Income, Which of the following Dividend options results in taxable income to the policyowner? D) the claim would be denied, A) the policy would be payable, minus the premium amount, The two major actions required for a policyholder to comply with the Reinstatement Clause are, A) provide evidence of insurability, agree to a new incontestable period A) The face amount and policy premium are not affected by the payment B) payor provision What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) The original face amount will be paid to the beneficiary How are surrender charges deducted in a life policy with a rear-end loaded provision? D) Period of time after the premium is due but the policy remains in force, D) Period of time after the premium is due but the policy remains in force, All of these are common exclusions to a life insurance policy EXCEPT, A) accidental death The restaurant hires only male wait staff. To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. D) Waiver of premium, An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n), A) attachment d) The PPO will pay reduced benefits. Deducted based on the income level. C) Guaranteed insurability Cash Value vs. A) dividend option B) settlement option C) nonforfeiture option D) interest-only option. policy has a decreased face amount A life insurance policyowner does NOT have the right to. B) Face amount of the new policy equals that of the original policy D) irrevocable assignment. C) dies instantly from a car accident A) Payment mode C) Extended term insurance Life Income, All of the following statements are true regarding a policys Grace period EXCEPT Diffusion Let us complete them for you. D) The amount of premiums paid will be returned with interest, C) The death benefit paid will be what the premium would be purchased at the correct age. A double indemnity benefit will be payable to Matts beneficiary if Matt, A) is killed while committing a felony D) Reduced Paid-Up Insurance. Extended-term insurance is often thedefault non-forfeiture option. 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. 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. Marguerita is a Certified Financial Planner (CFP), Chartered Retirement Planning Counselor (CRPC), Retirement Income Certified Professional (RICP), and a Chartered Socially Responsible Investing Counselor (CSRIC). With the cash surrender value option, the policy owner terminates the policy and receives the remaining cash value within six months. reduced paid-up insurance cash value. T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Reduced Paid-up Permanent life insurance, long-term disability, and long-term care insurance policies may have nonforfeiture clauses. An insured is past due on his life insurance premium, but is still within the Grace Period. Why would you not want to prepare financial statements What action will the insurer take? D) Payor benefit. Extended Term Reduced Paid-up Cash Surrender Life Income. D) Extended term rider, In a life insurance policy, the entire contract consists of, A) policy and conditional receipt Using this, plot the residuals from the final regression equation created in step (b) against the values of Y that were fitted. The treatment is expensive and is not covered by Elaine's health insurance. B) Ike may eventually take out a policy loan Past-due interest payments not paid after 3 months will void the policy . Under a life insurance policy, what does the insuring clause state? C) Dividends are always taxable Cash Surrender, A Return of Premium life insurance policy is. A) Cancel the policy \text { Rent Expense } & 229,000 & \\ All of the following are true of Key Employee life insurance EXCEPT a) The death benefit is free from income taxes. Life insurance policyholders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value, and paid-up insurance. Which nonforfeiture option has the highest amount of insurance protection? Amount of premium payments and when they are due. What is an insurer required to do when faced with an error made under the Misstatement of Age provision? Waiver of Premium Ron's health insurance will not pay the full amount charged by the non-PPO doctor. D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance, D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance. b) Within 3 years. Life Income. h. Supplies. All of these are valid policy dividend options for a life insurance policyowner EXCEPT Kurt is an active duty serviceman who was recently killed in an accident while home on leave. C) nonforfeiture option Depending on the age of the policy, the cash surrender value could be less than theactual cash value. The automatic premium loan provision is designed to, All of these statements concerning Settlement Options are true EXCEPT All of the following statements are true regarding a policy's Grace period EXCEPT Past due premiums are waived Policy loans may still be made Full coverage continues Grace period terms are stated in the policy If Ron goes to a doctor who is not a PPO provider, what will happen? Kurt is an active duty serviceman who was recently killed in an accident while home on leave. The insurance company guarantees a minimum cash value for the insurancepolicy after a specific period, typically three years from when the policy starts. Ss attained age C) Paid-Up Additions Option Whole Life Insurance: Whats the Difference? Which of the following is the process of getting oxygen from the environment to the tissues of the body? D) Grace period, All of these are standard exclusions found in a life insurance policy EXCEPT, A) hazardous occupations Which of the following does a policyowner NOT have a right to change? He forgot to pay the premium that was due last week. She can reestablish coverage under which of the following provisions? AzAnswer team is here with the right answer to your question. Accumulation at Interest Eric's coverage is still in force because of which life insurance policy provision? D) Conditions. The Consideration clause in a life insurance contract contains what pertinent information? "What Are Life Insurance Non-Forfeiture Options? A) Transfer ownership of the policy Full face amount minus any past due premiums. I hope you got the correct answer to your question. D) buy additional insurance coverage, All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT, A) Extended Term Insurance e. Wages in the amount of $3,450 are owed but unpaid and unrecorded at year end. Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? o paid - up additions extended term insurance . All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT. Which of these actions will the insurer take? "Standard nonforfeiture law for life insurance.". A) Declarations C) Riders The goal of a life insurance policy is to protect the surviving dependents of the policyholder such that, after the death of the insured person, the insurance company pays a specific sum to the named beneficiaries. A Tax deductible. When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? Give your reasons. Which of these is NOT considered to be a common life insurance nonforfeiture option? Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? g. Salaries and Wages Expense An analysis indicates that prepaid rent on December 31 should be $2,300. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Variable Whole Life Insurance can be described as. A) Policy has a decreased face amount C) The policys premiums will increase after 20 years Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply? What provision in a life insurance policy states that the application is considered part of the contract? Cash surrender value applies to the savings element of whole life insurance policies payable before death. Which statement is true regarding policy dividends? B) Insured becomes totally disabled B) guaranteed insurability rider Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. A) Waiver Partially tax deductible depending on the income level. Which military service exclusion clause would pay upon his death? Life Policy, Riders and OptionsQ1 Quiz - Quizizz The owner gets the cash surrender value in cash, either partially or in full. until after the adjusting entries are made? Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? A) Cash surrender C) accident S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. See the bus stats for the Lincolnville School District. Which of these is NOT a valid policy dividend option? Fixed Amount 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. B) the death benefit What action can a policyowner take if an application for a bank loan requires collateral? \textbf{Rogers Coproration}\\ d. Accumulated Depreciation-Equipment. C) Reduction of Premium While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Explanation: (Life Insurance Policy Provisions, Options and Riders)There are only three non-forfeiture options: 1) Cash Surrender, 2) Reduced Paid-Up and the automatic option, 3) Extended Term. What does the ownership clause in a life insurance policy state? 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 The extended-term insurance also helps the policy owner to quit paying premiums for the original policy, but retain the equity accumulated in the policy. 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. B) $800 All of the following are optional methods of settlement after the insured has died EXCEPT life income option. B) Entire contract D) war. 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. A) Insuring clause C) Address C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill The policy is then issued with no scuba exclusions. Free Flashcards about Chapter 3 A waiting period must pass before becoming eligible for benefits A nonforfeiture clause is an insurance policy clause that is included in standard life insurance and long-term care insurance. Which of the following statements is true? Under an extended term nonforfeiture option, the policy cash value is converted to answer choices A higher face amount than the whole life policy. Required fields are marked *. D) Grace period provision. A policy loan is issued by an insurance company and uses the cash value of a life insurance policy as collateral. d) The key employee is the insured. C) The death benefit paid will be what the premium would be purchased at the correct age This year, it will be nothing.Via Ben Fischer of Sports Business Journal, the Amazon Prime series that follows an NFL team through a full season current is in . All of the following are standard life insurance policy nonforfeiture options EXCEPT: (A) cash surrender option(B) 1-year term insurance option(C) extended term insurance option(D) reduced paid-up (permanent) insurance option A (B) 1-year term insurance option 6 Q Which of the following statements best describes life insurance policy dividends? b. B) military service However, when the policy is terminated or the owner surrenders the policy, the death benefit ceases to exist. \text { Totals } & \underline{\underline{\$ 1,089,100}} & \underline{\underline{\$ 1,089,100}} C) Insured has had policy in force for a specified number of years PracticeTest Flashcards by Gabriel Martinez | Brainscape In order to project a classy image, an expensive seafood restaurant requires that its servers wear tuxedos . 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. C) collateral assignment at future dates specified in the contract with no evidence of insurability required, Additional coverage can be added to a Whole Life policy by adding a(n). The series is called All or Nothing. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. After surrendering a whole-life insurance policy, the death benefit on that policy no longer exists. c) Beneficiary's consent The four essential elements of all legal contracts are offer and acceptance, consideration, competent parties, and legal purpose. All of the following are nonforfeiture options, EXCEPT:

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