chapter 3-life provisions quiz Flashcards

L takes out a life insurance Policy and dies 10 years later. during the claim process, the insurer discovers that L had understate her age on the application. under the misstatement of a provision, the insurer will

adjust the death benefit to a reduced amount

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D is the policy owner and insured for a $50,000 life insurance policy. the beneficiary is D’s wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. if D dies without making any further changes, to whom will the policy proceeds be paid to?

D’s exwife is still the beneficiary of this policy even though policy ownership has changed to his current spouse

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M has an insurance policy that also has an outstanding policy loan at the time of M’s death. the insurer will deduct the outstanding loan balance from the

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S buys a $50,000 whole life policy with a $50,000 accidental death and dismemberment rider. S dies 1 year later of natural causes. how much will the insurer pay the beneficiary?

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which of these actions is taken when a policyowner uses a life insurance policy as collateral for a bank loan?

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when an insurer issues a policy that refuses to cover certain risks, this is referred to as an

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a(n) ______ rider may be used to include coverage for children under their parents life insurance policy.

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the advantage of reinstate an original life policy is

the premiums are based on a younger age