Montana Life Review 2 Verified Answers
Which of the following riders would NOT cause the Death Benefit to increase? Payor Benefit Rider
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife
dies 15 days later. The company pays the death ben...
Montana Life Review 2 Verified Answers
Which of the following riders would NOT cause the Death Benefit to increase? ✅Payor Benefit Rider
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife
dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that
the life insurance policy had what provision? ✅Common Disaster
A producer is helping a married couple determine the financial needs of their children in the event one
or both should die prematurely. This is a personal use of life insurance known as ✅Survivor Protection
Which of the following is correct concerning the taxation of premiums in a key-person life insurance
policy? ✅Premiums are not tax deductible as a business expense.
Life income joint and survivor settlement option guarantees ✅Income of 2 or more recipients until they
die
Which policy component decreases in decreasing term insurance? ✅Face amount
Which of the following, when attached to a permanent life insurance policy, allows the policyowner to
customize the policy to provide an additional amount of temporary insurance on the insured, or allows
amounts of temporary insurance to cover other family members? ✅Term Rider
Which of the following statements about the reinstatement provision is true? ✅It requires the
policyowner to pay all overdue premiums with interest before the policy is reinstated.
An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the
policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will
be paid out? ✅$50,000
, An insured receives an annual life insurance dividend check. What term best describes this
arrangement? ✅cash option
Who bears all of the investment risk in a fixed annuity? ✅the insurance company
Which of the following is TRUE regarding the annuity period? ✅it may last the lifetime of the annuitant
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for
2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what
will happen? ✅The insurer will pay the full death benefit to the beneficiary.
Which of the following is NOT true of life settlements? ✅the seller must be terminally ill
All of the following are true regarding a decreasing term policy EXCEPT ✅The payable premium amount
steadily declines throughout the duration of the contract.
All of the following statements concerning dividends are true EXCEPT ✅Dividend amounts are
guaranteed in the policy.
Which of the following information will be stated in the consideration clause of a life insurance policy?
✅amount of premium payment
Which of the following determines the length of time that benefits will be received under the Fixed-
Amount settlement option? ✅size of each installment
The death protection component of Universal Life Insurance is always ✅Annually Renewable Term
When the insured selects the extended term nonforfeiture option, the cash value will be used to
purchase term insurance with what face amount? ✅Equal to the original policy for as long as the cash
values will purchase.
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