An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws
near, the insured answers medical questions in order to prove insurability and qualifies for a discounted
premium rate. Which option best describes this scenario?
1) preferred premium reduction
2) contract review
3) revision of consideration
4) re-entry - ANSWER✔✔-4) re-entry
If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used?
1) life income
2) fixed period
3) fixed amount
4) lump sum - ANSWER✔✔-4) lump sum
When çalculating the amount a policyowner may borrow from a variable life policy, what must be
subtracted from the policy's cash value?
1) outstanding loans and interest
Page 4/42
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Emillect. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
