Life Insurance Ch. 3 - Life Policies & Life Provisions Questions And Answers 100% Verified A+ Guaranteed

A variable insurance policy A. guarantees a minimum rate of return B. does not allow the policyowner to assume the investment risk C. does not guarantee a return on its investment accounts D. does not guarantee an assignment provision {Ans: C. does not guarantee a return on its investment accounts}A long-term care rider in a life insurance policy may trigger a benefit in the event of which of the following? A. Critical illness B. Terminal illness C. Inability of the insured to perform more than 2 Activities of Daily Living (ADL's) D. Double the face amount should the insured be confined to a nursing home {Ans: C. Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)}Which of these are NOT an example of a Nonforfeiture option? A. Extended Term B. Reduced Paid-up C. Cash Surrender D. Life Income {Ans: D. Life Income}The automatic premium loan provision is designed to A. provide a source of revenue to the insurance company B. avoid a policy lapse C. allow a policyowner to request a policy loan D. allow a policyowner to take out additional coverage without evidence of insurability {Ans: B. avoid a policy