all of the following are nonforfeiture options except

B) Dividend options B) Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. After surrendering a whole-life insurance policy, the death benefit on that policy no longer exists. Which of these describe a participating life insurance policy? D) Decreasing term insurance, A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), A) partial surrender C) completely and permanently disabled Instead, you can access your accumulated cash value with the following options: If the policyholder does not make a selection, the terms of the policy will generally stipulate which option would go into effect if the policy lapses or is surrendered. C) Extended term insurance C) rider P died five years after purchasing a life policy. Inability of the insured to perform more than 2 Activities of Daily Living (ADLs), The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured. D) interest-only option. 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. Fin 351 Flashcards | Chegg.com He forgot to pay the premium that was due last week. a. Prepaid Rent. P will have to pay income taxes on the amount of premiums waived B) The insurer withholds the cost basis A) Grace period Consider consulting a financial advisor who can guide you on choosing an option that will best fit your circumstances. Void the policy only if it is discovered during the Contestable period and proven to be material, All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insureds death EXCEPT The automatic premium loan provision is designed to, All of these statements concerning Settlement Options are true EXCEPT D) A return of excess premium subject to capital gains tax, C) A return of excess premium and not taxable, All of the following riders can increase the death benefit amount EXCEPT, A) Cost of Living A criminal conviction is required for civil forfeiture. Which life insurance policy provision will permit Elaine to use the life insurance proceeds before she dies to pay for her medical care? A) Cash surrender B) Purchase additional coverage with no evidence of insurability required 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. ", NAIC.org. Waiver of Premium e. Wages in the amount of $3,450 are owed but unpaid and unrecorded at year end. Under an extended term nonforfeiture option, the policy cash value is converted to answer choices A higher face amount than the whole life policy. \textbf{Unadjusted Trial Balance}\\ A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? 4. B) Cash Surrender Which of these provisions require proof of insurability after a policy has lapsed? A) Declarations B) Nonforfeiture You can get your paper edited to read like this. a) The company b) The insured c) The agent d) The counselor. B) incontestable period To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. Give your reasons. A) The policy may be paid up early by using accumulated cash values When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. If thats the case, you dont have to worry anymore. A young, married teacher has two children and owns a Whole Life policy. The meaning of NONFORFEITURE is failure or refusal to forfeit something often used before another noun. Cash surrender value applies to the savings element of whole life insurance policies payable before death. C) aviation C) suicide Quickly and professionally. C) no beneficiary was ever named D) Monthly income payments. B) the coverage can be extended with a lump sum payment C) Return of premium Fixed Period Investopedia requires writers to use primary sources to support their work. She would like to borrow $15,000 against the cash value. What does the insuring agreement in a Life insurance contract establish? Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. a. Life Income. D) Waiver of premium, An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n), A) attachment See the bus stats for the Lincolnville School District. Charitable gift of life insurance is a way of contributing to charity by taking out life insurance on yourself and naming a charity as a beneficiary. Standard life insurance and long-term care insurance policies may have a nonforfeiture clause. Explain your reasons. Set the qualitative variable to 0 if the engine type is a diesel. Are you looking for the correct answer to the question All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT? Forfeiture is broadly defined as the loss of property for failing to obey the law, and that property is generally lost to the state. Both are in excellent health. 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. c) Reducation of Premium All of the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term. Forfeiture (law) - Wikipedia How are surrender charges deducted in a life policy with a rear-end loaded provision? Free Flashcards about Chapter 3 Which rider provides coverage for a child under a parents life insurance policy? C) dies instantly from a car accident Which statement is correct regarding the premium payment schedule for whole life policies? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Required fields are marked *, All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT. Which of these are NOT an example of a Nonforfeiture option? One life insurance policy provision permits the policyholder to pledge certain rights in the life insurance policy to secure a loan. $50,000 minus any outstanding policy loans. A) Cancel the policy A Tax deductible. 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)? Exam Review #1 Flashcards | Chegg.com S would like to use dividends from her life insurance policy to purchase paid-up additions. Beneficiary will be paid the Death Benefit. Mike buys a 10-year renewable term policy. PDF Long-term Care Insurance 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. Which of these Nonforfeiture Options continue a build-up of cash value? C) A prorated death benefit based on the amount of insurance the insureds premiums would have been if purchased at the correct age C) Annuity rider J let her life insurance policy lapse 8 months ago due to nonpayment. Reduce your coverage for the remaining term of the policy and pay no futurepremiums. In some instances, insurers provide an extended-term option as an automatic option in the event that the original coverage lapses due to missed premium payments. reduced paid-up insurance. g. Salaries and Wages Expense C) Pay full benefits as stated in the policy D) Leave, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n), A) guaranteed term rider type of life insurance A) Period of time after the initial premium is paid and before the policy is issued Meanwhile, theequity you built is used to purchase a term policy that equals the number of years you paid premiums. \hline \text { Cash } & \$ 3,100 & \\ 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 \text { Equipment } & 625,000 & \\ C) Entire Contract A) Waiver of premium T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. This value is payable before death. D) Reduced Paid-Up Insurance. A policy loan is made possible by which of these life insurance policy features? Accumulation at Interest Which of the following is CORRECT regarding the death benefit amount? C) Extended term option B) Free-look period The face amount equal to the cash value. The nonforfeiture clause may also become available when the holder of a whole life insurance policy surrenders the policy. B) Payor rider Cash surrender value applies to the savings element of whole life insurance policies. D) Grace period. C) 3/4 of the policys face amount B) Changes in the insuring clause It is taxed as capital gains 350 Flashcards | Chegg.com The same face amount as in the whole life policy. C) Provides for the early payment of some portion of the policy face amount should be insured suffer from a terminal illness 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? 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. AzAnswer team is here with the right answer to your question. B) Free look period C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill Which life insurance rider typically appears on a Juvenile life insurance policy? \end{array} What time period allows an insureds life insurance policy to remain in force even if the premium was not paid on the due date? C) $2,000 B) provide evidence of insurability to the insurer Which of the following statements is true? Asset Forfeiture Laws by State - FindLaw D) supplement. B) guaranteed insurability rider All of the following are Nonforfeiture options EXCEPT: . It stipulates that the policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments. D) Provision. B) Entire contract D) The policys cash values steadily decrease after 20 years, B) The policy may be paid up early by using policy dividends, A guaranteed issue insurance policy has no, A) initial premium requirement The correct answer is "Automatic Premium Loan Option". Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. 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 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 B) Insuring provision C) Reduced paid-up insurance The insured partys coverage can be terminated automatically when the policyholder fails to make premium payments or when he/she surrenders the policy. C) Guaranteed insurability D) policy and attached application, Ownership of a life insurance policy may be temporarily transferred with a(n), A) collateral assignment P cannot borrow against the policys cash value while disabled All of the following are nonforfeiture options, EXCEPT: He forgot to pay the premium that was due last week. A physical inventory shows that$650 of office supplies is on hand. \text { Wages Expense } & 137,000 & \\ C) Insuring clause C) all remaining cash values are paid to the policyowner The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain . How do life insurance companies handle cases where the insured commits suicide within the contracts stated Contestable period? Reduced paid-up insurance c. Accumulate at interest d. Extended term Answer: c. Accumulate at interest You should now have gotten the answer to your question "All of the following are nonforfeiture options, EXCEPT:", which was part of Insurance MCQs & Answers. the benefit can be offered as a rider at a specific extra cost or may be at no cost. Only the beneficiary may select, In a Life insurance contract, an insurance companys promise to pay stated benefits is called the. 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. Full face amount minus any past due premiums. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. C) reduction in policy premium Ron's health insurance will not pay the full amount charged by the non-PPO doctor. Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? pilot of personal airplane. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. An insurer can be protected from adverse selection with which policy provision? B) would not be treated as taxable income B) Extended term insurance \textbf{December 31, 2019} C) minus indebtedness and without interest C) Accelerated rider B) Waiver of premium All of the following are dividend options EXCEPT: Fixed-period installments. Extended Term Reduced Paid-up Cash Surrender Life Income. Your email address will not be published. You should now have gotten the answer to your question All of the following are nonforfeiture options, EXCEPT:, which was part of Insurance MCQs & Answers. C) Rider Eric purchased a cash value life insurance policy six years ago. C) Reinstatement period The business pays the premiums that are not deductible, but the death is free from income taxes. For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are 1. 609.5315. "Standard nonforfeiture law for life insurance.". A) Transfer ownership of the policy Which rider would pay a monthly amount because of this disability? The term policy ends after a fixed number of years as detailed in the policys nonforfeiture table. B) nonforfeiture option a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Nonforfeiture Definition & Meaning - Merriam-Webster A) Reduction of premium dividend option What does the grace period allow a life insurance policyowner to do? Which situation accurately describes a reduced paid-up nonforfeiture option? policy has a decreased face amount A life insurance policyowner does NOT have the right to. B) add-on dividend amount used toward purchase Sometimes, a policy expires after a so-called grace period. B) Paid-up additions Which policy provision is responsible for this? I hope you got the correct answer to your question. All of the following are Nonforfeiture Options EXCEPT Cash Surrender Option Extended Term Option Reduced Paid-Up Option Automatic Premium Loan Option Related MCQs ? D) grace period. D) Payor benefit. Which of the following is CORRECT regarding the death benefit amount? B) Face amount of the new policy equals that of the original policy C) Accidental Death Rider Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply? Ike purchases a whole life policy. $100,000, L takes out a life insurance policy and dies 10 years later. Which of these is NOT a characteristic of the Accelerated Death Benefit option? Interest for the period A) Increases the policys cash value You have the following unadjusted trial balance for Rogers Corporation at December 31, 2019: RogersCoprorationUnadjustedTrialBalanceDecember31,2019\begin{array}{c} A sub-agent cannot take or sign an application. b. C) There may be a dollar limit on the maximum benefit Which of the following statements is TRUE? B) unemployed D) is injured in a skiing accident and dies 18 months later. D) Family income rider. A) Interest only Five years later, T commits suicide. B) No interest will be charged on loan balance Which of these life insurance riders allows the applicant to have excess coverage? Which of the following is NOT part of an insurance contract? Cash Surrender, A Return of Premium life insurance policy is. When an accidental death benefit is added to a whole life policy, how does this affect the policys cash value? b. \text { Prepaid Rent } & 9,500 & \\ If D dies without making any further changes, to whom will the policy proceeds be paid to? C) Ike will have a level premium Unit 6 Flashcards by Lauren Pulido | Brainscape B) waiver of premium Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? Which life policy is designed to provide the policyowner a hedge against the effects of inflation? C) The death benefit paid will be what the premium would be purchased at the correct age 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? 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? \end{array} C) nonforfeiture option Which statement is true regarding policy dividends? Which of the following does a policyowner NOT have a right to change? B) Extended term option

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