His insurance policy continues in force without payment of further premiums. C) Paid-up option C) Address The length of time when the new policy will be in force will depend on the cash values available from the original policy and the age of the insured party at the time the person chooses the extended-term option. It is tax deductible B) Nonforfeiture Which situation accurately describes a reduced paid-up nonforfeiture option? C) reinstatement provision reduced paid-up insurance. B) The policy may be paid up early by using policy dividends D) Guaranteed Insurability, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policys inception, the insurer will only be liable for a return of premiums paid, A) minus indebtedness and with interest reduction of premium Which situation accurately describes a reduced paid-up nonforfeiture option? B) Pay age-corrected benefits In order to project a classy image, an expensive seafood restaurant requires that its servers wear tuxedos . He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. B) Extended term option Eric purchased a cash value life insurance policy six years ago. Diffusion Let us complete them for you. PDF Long-term Care Insurance I. C) Results All of the following are dividend options EXCEPT: Fixed-period installments. B) select a beneficiary CFI is the official provider of the global Commercial Banking & Credit Analyst (CBCA) certification program, designed to help anyone become a world-class financial analyst. Nonforfeiture Definition & Meaning - Merriam-Webster Your email address will not be published. AccountCashAccountsReceivableSuppliesPrepaidRentEquipmentAccumulatedDcprcciationOtherAssetsAccountsPayableUnearnedServiceRevenueNotePayable(due2022)CommonStockRetainedEarnings,12/31/2018ServiceRevenueWagesExpenseRentExpenseInterestExpenseTotalsDebit$3,10015,9004,2009,500625,00060,900137,000229,0004,500$1,089,100Credit$104,0009,40011,20050,000279,50037,000598,000$1,089,100. D) Waiver of premium, An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n), A) attachment Some states require a provision limiting the time parameters in which a claimant may seek recovery from an insurer under a policy. Life insurance policyholders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value, and paid-up insurance. Extended-term insurance is often thedefault non-forfeiture option. This rider is called a(n), A) Guaranteed insurability rider The business pays the premiums that are not deductible, but the death is free from income taxes. C) Suicide clause B) Free-look period A) The policy may be paid up early by using accumulated cash values A) Dividends are always guaranteed All of the following are Nonforfeiture options EXCEPT a Reduced paid-up b Interest only c Cash surrender d Extended term 6: Which of the following is guaranteed to the policyowner through nonforfeiture values? The action must be brought a) Within 2 years. An error was made on Marys life insurance application. What does the ownership clause in a life insurance policy state? Which of these is considered to be a Living Benefit option in a life insurance policy? 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 . Feel free to get in touch with us via email. Assignment of ownership B) Age ? The goal of a life insurance policy is to protect the surviving dependents of the policyholder such that, after the death of the insured person, the insurance company pays a specific sum to the named beneficiaries. Reduced Paid-Up Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? You dont have to worry about it anymore. Reduced Paid-up Rapid depletion of proceeds can be avoided type of life insurance a) Conversion b) Decreasing Term c) Reduced Paid-up d) Extended Term. Ron joins the PPO provided by his employer. B) Policy loans If thats the case, you dont have to worry anymore. a) The PPO won't pay any benefits b) Ron will have to pay a higher deductible c) The PPO will pay the same benefits as if Ron had seen a PPO physician. B) Application Using this, plot the residuals from the final regression equation created in step (b) against the values of Y that were fitted. P will still receive declared dividends Full face amount minus any past due premiums. Their purpose is to protect the insured's accumulated cash values in case the Whole Life or Endowment policy lapses. C) pay past due premiums, agree to new incontestable period fare-paying passenger. Insured must be totally disabled to qualify, Insured must be eligible for Social Security disability for claim to be accepted. \end{array} P died five years after purchasing a life policy. C) Reinstatement period This provision is the, All of the following are nonforfeiture options EXCEPT. Quickly and professionally. 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. You are eligible for the reduced "paid up" contingent nonforfeiture benefit when all three conditions shown below are met: The premium you are required to pay after the increase exceeds your original premium by the same percentage or more shown in the chart below; Triggers for a Substantial Premium Increase Issue Age Under 65 65-80 Over 80 A) Reduction of premium dividend option Plot the fitted values on the horizontal axis and the residuals on the vertical axis. Which of these Nonforfeiture Options continue a build-up of cash value? James is the insured on a life insurance policy where his age was misstated on the application. You can get your paper edited to read like this. Which life policy is designed to provide the policyowner a hedge against the effects of inflation? C) disability A) No death benefit is owed because of the misstatement of age What provision can Sheila add to her policy to address this concern? Chapter 4- Policy Provisions, Options and Riders (Exam 2) D) Extended term rider, In a life insurance policy, the entire contract consists of, A) policy and conditional receipt Azanswer team is here with the correct answer to your question. Of the following dividend options, which of these is taxable? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. D) The benefit can be offered as a rider at a specific extra cost or may be at no cost, D) The benefit can be offered as a rider at a specific extra cost or may be at no cost. Modify a provision in the insurance contract You have the following unadjusted trial balance for Rogers Corporation at December 31, 2019: RogersCoprorationUnadjustedTrialBalanceDecember31,2019\begin{array}{c} Whole Life Insurance: Whats the Difference? a) Extended Term Insurance The following situations involve some form of discrimination. C) all remaining cash values are paid to the policyowner D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance, D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance. Quickly and professionally. d) Reduced Paid-Up Insurance. Insurance companies can charge an interest rate based on the policyowners credit report, Past-due interest on a policy loan is added to the total debt. Which of these require an offer, acceptance, and consideration? Primerica Flashcards | Flashcards.io When the insured dies or at the policys maturity date, whichever happens first, The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called, All of these statements about the Waiver of Premium provision are correct EXCEPT Life Income. Exam Review #1 Flashcards | Chegg.com E and F are business partners. All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT. Chapter 3.2 - Subjecto.com D) Automatic premium loan provision, Matt is applying for life insurance and requests a double indemnity rider. Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply? What action will an insurer take if an interest payment on a policy loan is not made on time? C) Extended term option d. An analysis indicates that unearned service revenue should be$3,120. B) war He forgot to pay the premium that was due last week. Which of these provisions require proof of insurability after a policy has lapsed? b) The key employee has premiums deducted from his salary. Paid-up Additions D) any surrender charges owed by the policyowner, B) past due premiums that have not been paid by the end of the grace period. The death benefit would be equal to the benefit in the original whole life insurance policy. She can reestablish coverage under which of the following provisions? The policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. How to use nonforfeiture in a sentence. If Ron goes to a doctor who is not a PPO provider, what will happen? The insurance company charges a surrender fee to the policy owner to cover expenses incurred in recording the policy in the companys books and any administrative expenses incurred. With extended-term insurance, the face amount of the policy stays the same, but it is flipped to an extended-term insurance policy. Coverage can be added at specific ages, Evidence of insurability is required when the option is exercised. In what part of an insurance policy are policy benefits found? D) revoke an absolute assignment. Never tax deductible. A) A return of excess premium and partially taxable Meanwhile, theequity you built is used to purchase a term policy that equals the number of years you paid premiums. A) Accumulation at Interest Option D) Accelerated death benefit, Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. C) Insuring clause D) accidental death. Which rider would pay a monthly amount because of this disability? D) Settlement options. Individual insurance 2. C) Ike will have a level premium It stipulates that a policy owner will receive partial or full benefits or a refund of premium paid towards a whole life insurance policy if the policy lapses due to non-payment. D) Nonforfeiture options. Which statement is true if Ps premiums are waived due to a disability? B) pilot of personal airplane D) would be subject to a Federal estate tax, B) would not be treated as taxable income, The free-look provision gives the policyowner, A) the right to return the policy for a partial refund within a specified number of days B) Grace period What is an insurer required to do when faced with an error made under the Misstatement of Age provision? D) Grace period. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? What Is Charitable Gift of Life Insurance? Evidence of insurability is not required when the option is exercised 3. 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. Waiver of Premium is available on both permanent and term insurance policies B) military service C) Policys cash value is not affected B) Ike may eventually take out a policy loan C) automatic premium loan rider List of Excel Shortcuts Bruce is involved in an accident and becomes totally and permanently disabled. AILife.com. ", "Standard nonforfeiture law for life insurance.". B) the right to contest the terms of the policy Are you having trouble answering the question All of the following are nonforfeiture options, EXCEPT:? Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. With maintenance cost as the dependent variable and age, odometer miles, miles since last maintenance, and engine type as the independent variables, create a regression equation using statistical software by setting variable to 1. D was actively serving in the Marines when he was killed in an automobile accident while on leave. S dies 1 year later of natural causes. Also, the amount of reduced paid-up or extended-term insurance may decrease if a policys sub-account performance is poor or credited interest rates are low. D) $4,000 Diffusion Let us complete them for you. Nonforfeiture clauses offer protection in the event a policyholder stops paying their premium. B) Insured becomes totally disabled D) grace period. Tax deductible. Which rider provides coverage for a child under a parents life insurance policy? Coverage will be adjusted to reflect the insureds true age if a misstatement of age is discovered. C) Reduction of Premium If he dies, how will the adjusted death benefit be calculated? 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 C) Entire Contract D) cost of living rider. d. What price range is your specialty? C) Riders Recent Examples on the Web This relatively unknown nonforfeiture option is called a life settlement. A) $400 B) $800 C) $2,000 D) $4,000. B) policy and all sales material A) Accidental death rider A) Waiver of premium A waiting period must pass before becoming eligible for benefits Universal life (UL) insurance is permanent life insurance with an investment savings component. Which military service exclusion clause would pay upon his death? P purchases a $50,000 whole life insurance policy in 2005. D) Insured has become terminally ill. Elaine was diagnosed with a terminal illness. C) The entire cash value is taxable A) The original face amount will be paid to the beneficiary \text { Wages Expense } & 137,000 & \\ One type of life insurance is a nonparticipating whole life policy in which cash values are based on the insurer's present mortality, investment, and expense experience. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. A) Cash surrender A Tax deductible. B) Face amount of the new policy equals that of the original policy D) the right to return the policy for a full refund within a specified number of days, D) the right to return the policy for a full refund within a specified number of days, The double indemnity provision in a life insurance policy pertains to an insureds death caused by a(n), A) sickness Which statement is true regarding policy dividends? C) Paid-Up Additions Option One of the questions on the application asks if P engages in scuba diving, to which P answers "No". B) Insuring provision How many first time home buyers did you work with last year? B) Policy exclusion N dies September 15. Explanation: (Life Insurance Policy Provisions, Options and Riders)There are only three non-forfeiture options: 1) Cash Surrender, 2) Reduced Paid-Up and the automatic option, 3) Extended Term. What Is a Nonforfeiture Clause? 4 Payout Options Explained - Investopedia B) The insurers obligation to return all premiums upon an approved death claim g. Salaries and Wages Expense Ike purchases a whole life policy. A) dividend option B) settlement option C) nonforfeiture option D) interest-only option. B) payor provision Claims are denied under the Suicide clause of the policy, Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? She would like to borrow $15,000 against the cash value. Which of these are NOT an example of a Nonforfeiture option? A policy loan is made possible by which of these life insurance policy features? A young, married teacher has two children and owns a Whole Life policy. A) extended term Which of the following statements is CORRECT about accelerated death benefits? B) Waiver of Premium Past-due interest on a policy loan is added to the total debt How much do I qualify to borrow? beneficiarys age, M has an insurance policy that also has an outstanding policy loan at the time of Ms death. It is taxed as ordinary income. Which of these is an element of a Variable Life policy? The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? C) nonforfeiture option 4. B) Waiver of premium rider B) Payor rider B) Paid-up additions Loans obtained by a policyowner against the cash value of a life insurance policy A whole life policy option where extended term insurance is selected is called a. Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? C) There may be a dollar limit on the maximum benefit C) minus indebtedness and without interest B) Make a premium payment after the due date without any loss of coverage o paid - up additions extended term insurance . Beneficiary will be paid the Death Benefit. D) Leave, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n), A) guaranteed term rider Which of the following is the process of getting oxygen from the environment to the tissues of the body? Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? D) The agents obligation to pay a death benefit upon an approved death claim, C) The insurers obligation to pay a death benefit upon an approved death claim. C) Return of premium provision While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. The series is called All or Nothing. Reduced Premium. Let us have a look at your work and suggest how to improve it!