Ny Life Insurance Exam Review Prep | Questions And Verified Answers| 100% Correct (Latest 2024/ 2024 Update)

Which of the following riders will NOT cause the Death Benefit to increase? A. Accidental Death Rider B. Payor Benefit Rider C. Guaranteed Insurability Rider D. Cost of Living Rider {Ans: B. Payor Benefit Rider Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the payor is disabled or dies. With Guaranteed Insurability Rider, the policyowner can increase DB at specified ages or events, i.e. marriage or birth of a child; Cost of Living Rider increases DB to keep pace with inflation; in Accidental Death Rider, if the insured dies from an accident, DB is a multiple of the Face Amount}An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise conpetent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of this history one year later. What will probably happen? A. Because the insured is currently not a drug user, his policy will not be affected B. The policy will not be affected C. The policy will be voided