Nonforfeiture law - Study guides, Class notes & Summaries

Exam Simulator: Florida Life and Health State Exam Latest Update Graded A A nonforfeiture clause gives the policy owner guaranteed values even if the policy has lapsed P loses an arm is a farm accident and is paid $10k from his Accidental Death and Dismemberment policy. This benefit is known as the Capital Sum P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? ...

Billy is the owner of a life insurance policy and has chosen a policy settlement option under which the company will pay the beneficiary (his widow) an income each month for as long as she lives. Payment stops at her death. Which settlement option has Billy selected? A. Fixed amount option B. Fixed period option C. Interest only option D. Life income option - Answer-D. Life income option A man with an Accidental Death & Dismemberment (AD&D) policy having a Principal Sum of $100,000 and a...

Which of the following statements describes one of the reasons individuals purchase life insurance? - ANSWER-2. It creates an immediate estate. How long is the grace period for an individual life insurance policy? - ANSWER-1 month In this state the owner gets a "free look" of a specified number of days from - ANSWER-Delivery of the policy Which of the following would be likely to establish a SEP? - ANSWER-Smalls employers If a soliciting producer suspects that there could be misrep...

John has recently died and it was discovered that he was actually ten years older than what was listed on his life insurance policy. What will the insurer pay his beneficiary? correct answers The amount of insurance that his premiums would have purchased at his correct age Which of the following is considered the "automatic" Nonforfeiture Option that most insurers will use? correct answers Extended term Susan owns a life insurance policy that has accumulated $10,000 in cash value in whic...

Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - ANSWERCan be unequal The premiums paid by an employer for his employee's group life insurance are usually considered to be? - ANSWERTax-deductible to the employer Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes? - ANSWERAs a section 1035 exchange Which of these is NOT a ...

Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - ANS Can be unequal The premiums paid by an employer for his employee's group life insurance are usually considered to be? - ANS Tax-deductible to the employer Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes? - ANS As a section 1035 exchange Which of these is NOT a ...

Alabama Life and Health Insurance Questions and Answers Already Passed Billy is the owner of a life insurance policy and has chosen a policy settlement option under which the company will pay the beneficiary (his widow) an income each month for as long as she lives. Payment stops at her death. Which settlement option has Billy selected? A. Fixed amount option B. Fixed period option C. Interest only option D. Life income option D. Life income option A man with an Accidental Death & Dismember...

Louisiana Life and Health Simulator Questions and Answers Already Passed A licensee just renewed his license. How much time will pass before he will have to renew it again? 2 years How many eligible employees must be included in a contributory plan? 75% All of the following are Nonforfeiture options EXCEPT Interest only Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerc...

Life Insurance Practice Exam Questions With 100% Correct Answers The ownership provision entities the policy owner to do all of the following EXCEPT a) Assign the policy. b) Designate a beneficiary. c) Set premium rates. d) Receive a policy loan. - answerc) Set premium rates. The insurer sets premium rates based upon underwriting considerations. Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? a) The Guaranty...

Which of the following statements describes one of the reasons individuals purchase life insurance? - ANSWER-2. It creates an immediate estate. How long is the grace period for an individual life insurance policy? - ANSWER-1 month In this state the owner gets a "free look" of a specified number of days from - ANSWER-Delivery of the policy Which of the following would be likely to establish a SEP? - ANSWER-Smalls employers If a soliciting producer suspects that there could be misrep...