Life Insurance Exam 194 Questions With 100% Correct Answers

if the insured elects a partial payment from the accelerated benefit, the death benefit of the life policy will a. stay the same regardless how much is taken out b. increase gradually to the original face amount c. be reduced by the accelerated payment amount d. be forfeitures because it is taken out early {Ans: C. be reduced by the accelerated payment amount}An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do? a. pay nothing, there was a misrepresentation on the application b. pay the full death benefit and refund excess premium c. pay a reduced death benefit d. pay the full death benefit {Ans: C. pay a reduced death benefit the incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years. However, is does not apply to statements relating to age, sex, and identity}which dividend option would be taxable? a. reduction