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12 Cards in this Set
- Front
- Back
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III
What constitutes the entire contract |
The Policy and and copy of application, Along with any riders or amendments, from the entire contract |
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2 What is the purpose of a grace period |
To prevent unintentional policy lapse from nonpayment of premium |
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What is the difference between absolute and collateral assignment |
Absolute prominently transfers all rights of ownership to another person Collateral is a transference of partial rights |
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What is a free-look period and when does it begin |
Begins when policy owner receives policy not when insurer issues it Allows policy owner a specific number of days to review policy after delivery. If dissatisfied for any reason return it for full refund of premium’s |
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What happens to an unpaid policy loan at insured’s death |
Death benefits are reduced by amount of indebtedness |
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What is the purpose of an automatic premium loan provision? |
It Prevents unintentional lapse of policy due to nonpayment of premium. |
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What riders INCREASE the amount of the death benefit? |
Accidental death rider-pays double or triple the amount of the face value Cost of living rider automatically increases the amount of insurance based on an inflation index, Return of premium-pays back all the premiums in addition to the death benefit benefits and some rider and some others. |
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Which rider ALLOWS the early payment of a portion of a death benefit to the insured |
ACCELERATED death benefit rider |
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What are the 3 nonforfeiture options in life insurance policies |
CASH SURENDER VALUE REDUCED PAID-UP insurance EXTENDE term options |
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Which nonforfeiture option is automatically selected if the policy owner has not made a selection |
The extended term option in the event of termination of the original policy |
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Which dividen option increases the death benefit |
Paid-up additions increase the death benefit of the original policy by whatever amount the dividend will buy |
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What settlement options are available in life insurance policies |
CASH PAYMENT (LUMP SUM) LIFE INCOME INTEREST ONLY FIXED-PERIOD Installments FIXED-AMOUNTS installments |
