All of the following are optional methods of settlement after the insured has died EXCEPT. Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM). B) military service If a policy owner has continually made premium payments for a sufficient amount of time, a forfeiture clause might become active in one of two ways. A) Insuring clause The nonforfeiture benefit is designed to ensure that if you lapse your policy (i.e., stop paying premiums) after a specified number of years, you retain some benefits from the policy. d) The key employee is the insured. C) Return of premium She can reestablish coverage under which of the following provisions? The following situations involve some form of discrimination. The common disaster provision states the insurer will continue as if, A) the insured outlived the beneficiary Which statement is true if Ps premiums are waived due to a disability? A sub-agent cannot take or sign an application. C) automatic premium loan At year end, you have the following data for adjustments: a. All of the following statements are true EXCEPT, A) Mikes policy will develop no cash value over the policys term B) Reinstatement provision Paid-up additional insurance is whole life insurance that a policyholder purchases using the policys dividends. This year, it will be nothing.Via Ben Fischer of Sports Business Journal, the Amazon Prime series that follows an NFL team through a full season current is in . D) Payor benefit. The following are the payout options outlined in the nonforfeiture clause of a whole life insurance policy: If a policy owner chooses the cash surrender value option, the insurer will pay the remaining cash value within six months. C) nonforfeiture option. f. Six months interest at 8% on the note was paid on September 30. Refer to the earlier problem. Which policy provision protects the policyowner from unintentional lapse of the contract? "What Are Life Insurance Non-Forfeiture Options? What action will the insurer take? the policy may be paid up early by using policy dividends. Have a great time ahead. A) Insured becomes unemployed All or Nothing is, for this year and maybe for good, nothing 350 Flashcards | Chegg.com All of the following are dividend options EXCEPT: Fixed-period installments. Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? The extended-term insurance also helps the policy owner to quit paying premiums for the original policy, but retain the equity accumulated in the policy. How are acts of war and aviation treated under a group life insurance policy? Meanwhile, theequity you built is used to purchase a term policy that equals the number of years you paid premiums. A lower face amount than the whole life policy. until after the adjusting entries are made? Void the policy only if it is discovered during the Contestable period and proven to be material, All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insureds death EXCEPT D) The amount of premiums paid will be returned with interest, C) The death benefit paid will be what the premium would be purchased at the correct age. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. It is not taxable D) a source of funding a term rider to the policy, A) the policy loan value which the insured may borrow against. C) Accelerated rider The rest are all possible exclusions. B) Face amount of the new policy equals that of the original policy D) $4,000 Quickly and professionally. D) Premium decrease. D was actively serving in the Marines when he was killed in an automobile accident while on leave. Azanswer team is here with the correct answer to your question. Learn how policy loans work and about their risks. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. She has been working in the financial planning industry for over 20 years and spends her days helping her clients gain clarity, confidence, and control over their financial lives. b) Interest only Nonforfeiture values include cash surrender, extended term and reduced paid-up. You can get your paper edited to read like this. Pat owns a 20-pay life policy with a paid-up dividend option. The meaning of NONFORFEITURE is failure or refusal to forfeit something often used before another noun. C) Paid-Up Additions Option All of the following are Nonforfeiture Options EXCEPT Accounting MCQs \text { Retained Earnings, 12/31/2018 } & & 37,000 \\ B) Make a premium payment after the due date without any loss of coverage c. Inventory. D) interest-only option. dividend amount used toward purchase A) Accelerated death benefit rider What is the purpose for having an accelerated death benefit on a life insurance policy? at future dates specified in the contract with no evidence of insurability required, Additional coverage can be added to a Whole Life policy by adding a(n). C) The entire cash value is taxable Which of these is NOT a valid policy dividend option? Reduce your coverage for the remaining term of the policy and pay no futurepremiums. B) Dividend option C) Return of premium provision B) the policy would be payable only after the beneficiary makes past due premium payment C) Incontestability When does a life insurance policys waiver of premium take effect? type of life insurance D) Nonforfeiture clause. Which of the following statements is (are) true regarding life insurance policyholder dividends? B) Exclusion One life insurance policy provision specifies that the insurer cannot deny payment to the beneficiary because of concealment or misrepresentation if the life insurance policy has been in force for two years during the insured's lifetime. However, any money you take out will be deducted from the death benefit that goes to your beneficiaries. suicide. What will the beneficiary receive if the insured dies during this Grace Period? In most cases, the surrender cash value may be different from the cash value due to the policy owner. b) Cash Surrender C) Nonforfeiture provision Mike buys a 10-year renewable term policy. D) Reduced Paid-Up Insurance. What time period allows an insureds life insurance policy to remain in force even if the premium was not paid on the due date? Insurance companies can send delinquent interest accounts to a collection agency Let us have a look at your work and suggest how to improve it! Universal life (UL) insurance is permanent life insurance with an investment savings component. After reading about the changes in the government's role in the economy, write a one-page essay arguing whether you think those changes are helpful or harmful to the U.S. economy. It is taxed as ordinary income. The interest earned on policy dividends is A. Increased proceeds can be provided through accumulation of interest C) Ike will have a level premium A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. Deducted based on the income level. A) Martial status C) Accelerated death benefit d) The PPO will pay reduced benefits. Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, Cryptocurrency & Digital Assets Specialization (CDA), Business Intelligence Analyst Specialization, Commercial Banking & Credit Analyst (CBCA), National Association of Insurance Commissioners (NAIC), Financial Planning & Wealth Management Professional (FPWM). B) Probation period Partially tax deductible depending on the income level. D) Conditions. Such an option considers the saving component of the policy. Which of these is an element of a Variable Life policy? Ron joins the PPO provided by his employer. Which of the following would NOT be an exclusion in a long-term care policy? Waiver of Premium D) Certificate of Authority, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, A) cash outlay to the policyowner A) 12/15th of the policys face amount Both are in excellent health. What action can a policyowner take if an application for a bank loan requires collateral? Which of these is NOT a characteristic of the Accelerated Death Benefit option? A) Interest only What kind of rider did S include on the policy? \end{array} D) One-Year Term Dividend Option, A life insurance policyowner does NOT have the right to, A) change a beneficiary With the extended term option, you can choose to use the cash value in a whole life insurance policy to term insurance, allowing you to stop paying premiums. Thanks for choosing us. C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill B) The policy may be paid up early by using policy dividends These options include: If the policyholder does not choose any of the above options after the policy is terminated or surrendered, the insurance company will go for the payout option stipulated in the life insurance policy of the owner. Life Income, Which of the following Dividend options results in taxable income to the policyowner? B) guaranteed insurability rider D) accidental death. Sometimes, a policy expires after a so-called grace period. The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insureds death is called a(n), Which of these is NOT considered to be a right given to a policyowner? Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. S has a Whole Life policy with a premium payment due soon. "What Are Life Insurance Non-Forfeiture Options? 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, Life insurance policies will normally pay for losses arising from, A) commercial aviation Five years later, T commits suicide. B) No interest will be charged on loan balance Which nonforfeiture option has the highest amount of insurance protection? For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are 1. With the cash surrender value option, the policy owner terminates the policy and receives the remaining cash value within six months. \text { Unearned Service Revenue } & & 11,200 \\ D) hazardous jobs, A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n), A) insuring clause B) It allows for policy loans to be advanced to the insured in the event of unemployment Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. B) Entire Contract clause b) Within 3 years. All of the following are Nonforfeiture options EXCEPT A Extended term B Reduced paid-up C Interest only D Cash surrender `````C Interest only Which statement is NOT true regarding a Straight Life policy?
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