Life Insurance Exam (Wyoming) Chap 3 Practice Questions And Ans

Suicide provision {Ans: protects the insurer against the purchase of a policy in contemplation of suicide}equity index universal life insurance {Ans: permanent life insurance that allows policyholders to link accumulation values to an outside equity index such as the S%P 500.}cash surrender option (nonforfeiture option) {Ans: immediate cash payment of their cash values when their policies are surrendered.}Incontestable clause {Ans: specifies that after a certain period of time (usually 2 years from the date of issue) the insurer no longer has the right to contest the validity of the life insurance policy so long as the contract continues in force even on the basis of a material misstatement, concealment, or fraud.}Grace period provision {Ans: protect the insured by preventing the life insurance company from forcing the insured to provide insurability again.}graded premium whole life {Ans: redistributes the premiums. premiums are lower than typical whole life rates during the preliminary period after the policy is issued. The premiums will initially increase yearly during the preliminary period then remain level afterwards.}accidental death benefit rider {Ans: Provides an additional amount of insurance usually equal to the face amount of the base policy if the cause of