WA Life Insurance Study Questions with Complete Solutions

WA Life Insurance Study Questions with Complete Solutions Which of these is NOT considered to be a common life insurance nonforfeiture option? a) Cash surrender b) Extended term insurance c) Reduced paid-up insurance d) Life income annuity d) Life income annuity All of the following riders can increase the death benefit amount EXCEPT a) Cost of living b) Waiver of Premium c) Accidental Death Rider d) Guaranteed Insurability b) Waiver of Premium Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE? a) Net death benefit will be reduced if the loan is not repaid b) No interest will be charged on loan balance c) Term life policies are the only type of insurance that allows policy loans d) A loan can be taken out for up to the face amount of the policy a) Net death benefit will be reduced if the loan is not repaid James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? a) The original face amount will be paid to the beneficiary b) The policy will be voided with no death benefits paid c) The death benefit paid will be what the premium would have purchased at the correct age d) The amount of premiums paid will be returned with interest c) The death benefit paid will be what the premium would have purchased at the correct age Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? a) Waiver of Premium b) Juvenile Waiver c) Guaranteed Insurability d) Payor benefit d) Payor benefit Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? a) Interest only b) Reduced paid-up insurance c) Extended term insurance d) Cash surrender a) Interest only All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT a) Extended Term Insurance b) Cash Surrender c) Reducation of Premium d) Reduced Paid-Up Insurance c) Reduction of Premium Life insurance policies will normally pay for losses arising from a) commercial aviation b) war c) suicide d) hazardous jobs a) commercial aviation If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? a) No death benefit is owed because of the misstatement of age b) The full original death benefit listed on the policy c) A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age d) The original death benefit listed on the policy minus any outstanding loans and interest c) A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age If an insured dies during the grace period with no premiums paid a) the policy would be payable, minus the premium amount b) the policy would be payable only after the beneficiary makes past due premium payment c) all past premiums will be refunded with interest d) the claim would be denied a) the policy would be payable, minus the premium amount All of these are common exclusions to a life insurance policy EXCEPT a) accidental death b) military service c) aviation d) hazardous occupations a) accidental death A life insurance policyowner does NOT