Rhode Island life insurance exam Prep| Complete
Questions with 100% Correct Answers
Existing insurer - ✔✔The insurance company whose policy will be changed or
affected by the replacement.
Accidental death benefit rider - ✔✔Pays an extra amount usually equal to the policy's
face value if the insured eyes under certain conditions as stipulated in the policy. Does
not include any accident that is a result of any illness or physical disability that the
insurance may have, but only if the death is a result of an external, violent and purely
accidental cause.
Riders affecting the death benefit amount - ✔✔1) accidental death benefit, 2)
guaranteed insurability option, 3) cost of living adjustment, 4) guaranteed convertible
option, 5) term, 6) other insureds, 7) return of policy premium
Types of accelerated benefits - ✔✔1) viatical agreement, 2) terminal illness rider, 3)
long term-care accelerated benefit rider, 4) qualified conditional rider
Qualified conditional rider - ✔✔Payment of up to 25% of the policy's face amount for
certain illnesses that are specified in the policy such as stroke, heart attack, etc.
Direct-Response sales - ✔✔Solicitations that take place: through the mail, by
telephone, via the Internet, or through other mass communication media.
Consideration clause - ✔✔A legal requirement that both parties to the policy, the
insured as well as the insurance company, exchange something of value. The insured
pays a premium, and the company promises to pay the policy benefits.
, Contestable period - ✔✔A period ( usually 2 years) after the policy is issued during
which the company has the right to cancel the policy because of the insurance material
misrepresentation, fraud, etc.
Primary beneficiary - ✔✔Any person, class of people ( such as the insured's children ),
institution or trust specifically named in a life or annuity contract to receive the policy
benefits upon the insured's death.
Contingent beneficiary - ✔✔The person(s) or institution designated in the policy to
receive the policy benefits if the primary beneficiary dies while the insured is still living.
Tertiary beneficiary - ✔✔Third layer of beneficiary. Receive the benefits only when
both the primary and the contingent beneficiaries die while the insured is still living.
Owner - ✔✔The person or institution that applies for the policy, sign the application
stipulating the information is correct, and pays the premium. Has the right to change
beneficiaries, borrow cash values, and choose payout options. Could be the insured
comma the beneficiary, or an interested third party.
Servicemembers group life insurance - ✔✔Abbreviated as SGLI, this program allows
servicemen and women to purchase life insurance because active military personnel can
I purchase life insurance through regular means.
Spouse's old age benefit - ✔✔The spouse of a worker covered by Social Security is
eligible for 50% of the working spouse is benefit, or for a reduced benefit if they file
before but they are full retirement age would be.
Primary insurance amount (PIA) - ✔✔Under Social Security, the benefit a person
receives if they elect to begin receiving retirement benefits at their normal retirement
age.
Questions with 100% Correct Answers
Existing insurer - ✔✔The insurance company whose policy will be changed or
affected by the replacement.
Accidental death benefit rider - ✔✔Pays an extra amount usually equal to the policy's
face value if the insured eyes under certain conditions as stipulated in the policy. Does
not include any accident that is a result of any illness or physical disability that the
insurance may have, but only if the death is a result of an external, violent and purely
accidental cause.
Riders affecting the death benefit amount - ✔✔1) accidental death benefit, 2)
guaranteed insurability option, 3) cost of living adjustment, 4) guaranteed convertible
option, 5) term, 6) other insureds, 7) return of policy premium
Types of accelerated benefits - ✔✔1) viatical agreement, 2) terminal illness rider, 3)
long term-care accelerated benefit rider, 4) qualified conditional rider
Qualified conditional rider - ✔✔Payment of up to 25% of the policy's face amount for
certain illnesses that are specified in the policy such as stroke, heart attack, etc.
Direct-Response sales - ✔✔Solicitations that take place: through the mail, by
telephone, via the Internet, or through other mass communication media.
Consideration clause - ✔✔A legal requirement that both parties to the policy, the
insured as well as the insurance company, exchange something of value. The insured
pays a premium, and the company promises to pay the policy benefits.
, Contestable period - ✔✔A period ( usually 2 years) after the policy is issued during
which the company has the right to cancel the policy because of the insurance material
misrepresentation, fraud, etc.
Primary beneficiary - ✔✔Any person, class of people ( such as the insured's children ),
institution or trust specifically named in a life or annuity contract to receive the policy
benefits upon the insured's death.
Contingent beneficiary - ✔✔The person(s) or institution designated in the policy to
receive the policy benefits if the primary beneficiary dies while the insured is still living.
Tertiary beneficiary - ✔✔Third layer of beneficiary. Receive the benefits only when
both the primary and the contingent beneficiaries die while the insured is still living.
Owner - ✔✔The person or institution that applies for the policy, sign the application
stipulating the information is correct, and pays the premium. Has the right to change
beneficiaries, borrow cash values, and choose payout options. Could be the insured
comma the beneficiary, or an interested third party.
Servicemembers group life insurance - ✔✔Abbreviated as SGLI, this program allows
servicemen and women to purchase life insurance because active military personnel can
I purchase life insurance through regular means.
Spouse's old age benefit - ✔✔The spouse of a worker covered by Social Security is
eligible for 50% of the working spouse is benefit, or for a reduced benefit if they file
before but they are full retirement age would be.
Primary insurance amount (PIA) - ✔✔Under Social Security, the benefit a person
receives if they elect to begin receiving retirement benefits at their normal retirement
age.
