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WV state life insurance test(40 exam questions fully solved)
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WV state life insurance test(40 exam questions fully solved)
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WV state lifeinsurance test(40 exam
questions fully solved)
Absolute Assignment - answer Policy assignment under which the assignee
(person to whom the policy is assigned) receives full control over the policy
and also full rights to its benefits. Generally, when a policy is assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even
though the assignment is absolute in form.
Accidental Death Benefit Rider - answer pays a multiple of the death proceeds
if the cause of death is a covered accidental event.
Accelerated Benefit Rider - answer Allows the insured to receive a portion of
the death benefit prior to death if the insured has a terminal illness and
expected to die within 1-2 years. Whatever amount is withdrawn in an
accelerated death benefit will decrease the death benefit when death occurs.
Accumulate Interest Option - answer The "accumulate interest" dividend
option allows the policy owner to leave dividends with the insurer to
accumulate interest. In turn, the policy owner will be required to pay taxes on
any interest (profit) generated by the dividend.
, Assignment Clause - answer allows the right to transfer policy rights to another
person or entity
Automatic Premium Loan Provision - answer Authorizes insurer to
automatically pay any premium in default at the end of the grace period and
charge the amount so paid against the life insurance policy as a policy loan.
Cash option - answer The "cash" dividend option allows the policy owner to
cash out the dividends they receive.
Cash Surrender Option - answer A nonforfeiture option that allows whole life
insurance policy owners to receive a payout of their policy's cash values.
Collateral Assignment - answer Assignment of a policy to a creditor as security
for a debt. The creditor is entitled to be reimbursed out of policy proceeds for
the amount owed. The beneficiary is entitled to any excess of policy proceeds
over the amount due the creditor in the event of the insured's death.
Consideration Clause - answer states a policyowner must pay a premium in
exchange for the insurer's promise to pay benefits. A policyowner's
consideration consists of completing the application and paying the initial
premium. The amount and frequency of premium payments are contained in
the consideration clause. "Please CONSIDER me for insurance. Here is my
COMPLETED APPLICATION, INITIAL PREMIUM, and how much, how
often I agree to pay. Please consider me."
Dependent Riders (Other Insureds Rider) - answer Dependents may be added
to as additional (other) insureds through the use of a dependent rider. Other
insured riders are typically used for spouses and children.
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