A) Entire contract period Life Income, Which of the following Dividend options results in taxable income to the policyowner? What are collateral assignments normally associated with? Which of the following statements is TRUE? Diffusion Let us complete them for you. D) accidental death. a) The company b) The insured c) The agent d) The counselor. D) Provision. The above question All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT, Was part of Insurance MCQs & Answers. The nonforfeiture benefits clause allows the owner to choose full benefits or partial benefits when the premium can no longer be paid starting after a certain number of years. Which statement is true regarding policy dividends? reduction of premium Which situation accurately describes a reduced paid-up nonforfeiture option? One of the questions on the application asks if P engages in scuba diving, to which P answers "No". When a life insurance policy is surrendered, how does the cost recovery rule apply? Ss attained age Interest only is a settlement option. D) Allows the insured to convert a term life policy to whole life with no evidence of insurability, B) Purchase additional coverage with no evidence of insurability required, Loans obtained by a policyowner against the cash value of a life insurance policy, A) are treated as taxable income In a reduced paid-up insurance option, the policy owner receives a lower amount of payments made as premiums for the original whole life insurance. C) Entire Contract What is an insurance policys grace period? C) Paid-up additions A) Waiver of premium Reduced paid-up insurance c. Accumulate at interest d. Extended term Answer: c. Accumulate at interest You should now have gotten the answer to your question "All of the following are nonforfeiture options, EXCEPT:", which was part of Insurance MCQs & Answers. A) Grace period \text { Accounts Receivable } & 15,900 & \\ Which of these is NOT a characteristic of the Accelerated Death Benefit option? B) Extended term option A) 12/15th of the policys face amount D is the policyowner and insured for a $50,000 life insurance policy. All of the following are Nonforfeiture Options EXCEPT Cash Surrender Option Extended Term Option Reduced Paid-Up Option Automatic Premium Loan Option Related MCQs ? Which of the following statements is true? All of the following are dividend options EXCEPT: Fixed-period installments. Eric's coverage is still in force because of which life insurance policy provision? What action will the insurer take? How to use nonforfeiture in a sentence. C) Guaranteed insurability d) Revocable Revocable beneficiares can be changed at any point. D) war, An insured individual and the policys beneficiary die from the same accident. d) Alzheimer's disease While normally mental and nervous disorders or disease are excluded in long-term care policies, Alzheimer's disease is not. All of the following are TRUE statements regarding the accumulation at interest option EXCEPT The interest credited under this option is not taxable since it remains inside the insurance policy. A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following? D) policy and attached application, Ownership of a life insurance policy may be temporarily transferred with a(n), A) collateral assignment For traditional whole-life policies, the owner decides which of four ways (see below) they would like to access the policys cash value. The policyis calculatedfrom the insureds attained age. M had an annual life insurance premium payment due January 1. An automatic premium loan is not considered a Nonforfeiture Option. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Depending on the age of the policy, the cash surrender value could be less than theactual cash value. D) $4,000 What does the grace period allow a life insurance policyowner to do? B) would not be treated as taxable income d) Reduced Paid-Up Insurance. Instead, you can access your accumulated cash value with the following options: If the policyholder does not make a selection, the terms of the policy will generally stipulate which option would go into effect if the policy lapses or is surrendered. \text { Unearned Service Revenue } & & 11,200 \\ Evidence of insurability is required when the option is exercised An analysis indicates that prepaid rent on December 31 should be $2,300. James is the insured on a life insurance policy where his age was misstated on the application. c) Reducation of Premium Surrender Value: What's the Difference? c. Inventory. The series is called All or Nothing. Which life insurance rider typically appears on a Juvenile life insurance policy? Whole Life Insurance: Whats the Difference? All of these would be factors that determine how much coverage can be purchased EXCEPT B) war D) Life income annuity. She would like to borrow $15,000 against the cash value. However, during the early years of awhole life insurance policy, the savings portion brings little return compared to thepremiumspaid. a) Treatment payable by Medicare. Bruce is involved in an accident and becomes totally and permanently disabled. The policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments. When does a life insurance policys waiver of premium take effect? Of the following dividend options, which of these is taxable? B) guaranteed insurability rider For some companies, this option may be automatic when surrendering a whole life insurance policy. What does the ownership clause in a life insurance policy state? What is the purpose for having an accelerated death benefit on a life insurance policy? Partially tax deductible depending on the income level. C) the outstanding policy loan balance reduced paid-up insurance. A person may have a vested interest in property to be forfeit in two ways: In personum jurisdiction and in rem jurisdiction. The following situations involve some form of discrimination. Extended Term Sometimes, a policy expires after a so-called grace period. B) No interest will be charged on loan balance A) Proof of insurability A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? A policy loan is issued by an insurance company and uses the cash value of a life insurance policy as collateral. D) A loan can be taken out for up to the face amount of the policy, A) Net death benefit will be reduced if the loan is not repaid, Life insurance policies will normally pay for losses arising from, A) commercial aviation You can get your paper edited to read like this. o paid - up additions extended term insurance . 609.5315. A) Bank loans Ron's health insurance will not pay the full amount charged by the non-PPO doctor. Extended Term Reduced Paid-up Cash Surrender Life Income. Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy. All of the following statements are true regarding a policy's Grace period EXCEPT Past due premiums are waived Policy loans may still be made Full coverage continues Grace period terms are stated in the policy \text { Prepaid Rent } & 9,500 & \\ B) Payor rider The policy owner does not forfeit the previous payments and is entitled to receive the policys cash value. A) No death benefit is owed because of the misstatement of age Which of these Nonforfeiture Options continue a build-up of cash value? C) Annuity rider Paid-up Additions Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? Cash Forfeiture is broadly defined as the loss of property for failing to obey the law, and that property is generally lost to the state. For traditional whole-life policies, the policyholder decides how they would like to access the policys cash value. d) The key employee is the insured. The restaurant hires only male wait staff. Explain your reasons. A) The agents obligation to provide the proper amount of coverage A physical inventory shows that$650 of office supplies is on hand. All of the following statements are true EXCEPT, A) Mikes policy will develop no cash value over the policys term \text { Account } & \textbf { Debit } & \textbf { Credit } \\ B) Waiver of premium A sub-agent cannot take or sign an application. safeguard the insurer from an applicant who is contemplating suicide, A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the. \text { Note Payable (due 2022) } & & 50,000 \\ C) Paid-Up Additions Option C) automatic premium loan rider Georgia requires legal actions to be brought forth no sooner than 60 days and no later than 3 years after proof of loss. Accounting Cycle and Classifying Accounts, Adjusting Accounts for Financial Statements, Asset Demand and Supply under Uncertainty, Business Analytics & Technology Management Chapter 2, Business Analytics & Technology Management Chapter 3, Business Analytics & Technology Management Chapter 4, Business Analytics & Technology Management Chapter 5, Business Analytics & Technology Management Chapter 6, Capital Budgeting and Managerial Decisions, Derivative Instruments and Hedging Activities, External Financial Statements and Revenue Recognition, Financial Intermediaries and Financial Markets, Financial Markets and Securities Offerings, Financial Statements and Accounting Transactions, Integrated Marketing Communications and Direct Marketing, Interactive Marketing and Electronic Commerce, Interpersonal and Organizational Communication, Introduction to Human Resource Management, Introduction to Human Resources Assessment, Managerial Accounting Concepts and Principles, Market Segmentation Targeting and Positioning, Organization and Operation of Corporations, Organizational Markets and Buyer Behaviour, Profitability Analysis and Analytical Issues, Profitability Analysis and Decentralization, Reporting and Analyzing Long Lived Assets, Responsibility Accounting and Performance Measures, Understanding Interest Rates Determinants. D) the insured and beneficiary died at the same time. A) dividend option B) settlement option C) nonforfeiture option D) interest-only option. The death benefit would be equal to the benefit in the original whole life insurance policy. d) The PPO will pay reduced benefits. A) Martial status In a life insurance policy, which feature states that the policy will not cover certain risks? Waiver of Premium is available on both permanent and term insurance policies C) Dividend schedule b) The key employee has premiums deducted from his salary. P cannot assign ownership of the policy while premiums are being waived, Which of these are NOT an example of a Nonforfeiture option? the death benefit paid will be what the premium would have purchased at the correct age. A) Incontestable period C) 3/4 of the policys face amount What is the Suicide provision designed to do? All of the following life insurance policies develop a cash value EXCEPT term life insurance. \end{array} \text { Service Revenue } & & 598,000 \\ To keep advancing your career, the additional CFI resources below will be useful: Within the finance and banking industry, no one size fits all. B) absolute assignment Depending on the age of the policy, the cash surrender value could be less than theactual cash value. Which provision will pay a portion of the death benefit prior to the insureds death due to a serious illness? fixed-period option. Which of these would limit a companys liability to provide insurance coverage? Which policy provision is responsible for this? Ron joins the PPO provided by his employer. Are you having trouble answering the question All of the following are nonforfeiture options, EXCEPT:? All of the following are optional methods of settlement after the insured has died EXCEPT life income option. A) Payment mode The reduced life insurance coverage is calculated based on the insureds attained age, cash surrender value, and the number of premiums paid by the policy owner. You are eligible for the reduced "paid up" contingent nonforfeiture benefit when all three conditions shown below are met: The premium you are required to pay after the increase exceeds your original premium by the same percentage or more shown in the chart below; Triggers for a Substantial Premium Increase Issue Age Under 65 65-80 Over 80 \text { Interest Expense } & \underline{~~~~~~~~~~4,500} &\underline{~~~~~~~~~~~~~~~~~~~} \\ Buy extended insurance with accumulated cash value with no additional premiums required. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. When a policy is in force for a longer duration, the better the cash values and the nonforfeiture values. A) A return of excess premium and partially taxable See the bus stats for the Lincolnville School District. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Learn how it works. Which of the following statements is CORRECT about accelerated death benefits? B) Ike may eventually take out a policy loan B) aviation Recent Examples on the Web This relatively unknown nonforfeiture option is called a life settlement. One life insurance policy provision specifies that the insurer cannot deny payment to the beneficiary because of concealment or misrepresentation if the life insurance policy has been in force for two years during the insured's lifetime. If thats the case, you dont have to worry anymore. b) The key employee has premiums deducted from his salary. D) Leave, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n), A) guaranteed term rider A) It allows for a spouse to be added as a rider to a life insurance policy Who does the sub-agent represent? C) Period of time after a policy is issued and before it is delivered to policyowner b) Cash Surrender C) Reduced paid-up insurance Are you looking for the correct answer to the question All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT? D) Extended term rider, In a life insurance policy, the entire contract consists of, A) policy and conditional receipt b) Variable life Because variable life policies invest in the insurer's separate accounts and allow the policyowner to choose specific investment strategies, the interest rates will fluctuate depending upon the performance of the investments. Quickly and professionally. Sheila would like to purchase a cash value life insurance policy. Pat owns a 20-pay life policy with a paid-up dividend option. B) the coverage can be extended with a lump sum payment until after the adjusting entries are made? Which situation accurately describes a reduced paid-up nonforfeiture option? B) the death benefit Which of the following statements is (are) true regarding life insurance policyowner dividends? Insurance companies can send delinquent interest accounts to a collection agency I. The term policy ends after a fixed number of years as detailed in the policys nonforfeiture table. This rider is called a(n), A) Guaranteed insurability rider B) past due premiums that have not been paid by the end of the grace period Mississippi. Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. What will the insurer pay to Ps beneficiary? D) is injured in a skiing accident and dies 18 months later. What action can a policyowner take if an application for a bank loan requires collateral? reduced paid-up insurance cash value. C) are limited by the face amount of the policy In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy? Fixed Amount C) rider Pay face amount minus the past due premium. D) a source of funding a term rider to the policy, A) the policy loan value which the insured may borrow against. Interest for the period Your email address will not be published. The goal of a life insurance policy is to protect the surviving dependents of the policyholder such that, after the death of the insured person, the insurance company pays a specific sum to the named beneficiaries. Consider consulting a financial advisor who can guide you on choosing an option that will best fit your circumstances. A counselor receives a fee for advice, and can maintain a dual license as an agent and counselor. Have a great time ahead. B) Application B) It allows for policy loans to be advanced to the insured in the event of unemployment D) interest-only option. A nonforfeiture clause is an element included in standard life insurance and long-term care insurance. C) There may be a dollar limit on the maximum benefit $100,000, L takes out a life insurance policy and dies 10 years later. B) Grace period A) Waiver of premium provision B) The policy may be paid up early by using policy dividends In order to convert the engine type (diesel or gasoline) to a qualitative variable, first add a variable. f. Six months interest at 8% on the note was paid on September 30. Please check below to know the answer. policy has a decreased face amount A life insurance policyowner does NOT have the right to. Interest only is a settlement option. B) pilot of personal airplane B) Extended term insurance Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. Past due premiums are waived B) Period of time it takes for a policys underwriting to compete A) Accelerated death benefit rider B) Face amount of the new policy equals that of the original policy A) Cancel the policy the benefit can be offered as a rider at a specific extra cost or may be at no cost. D) hazardous jobs, A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n), A) insuring clause The action must be brought a) Within 2 years. Eric purchased a cash value life insurance policy six years ago. A) Optional rider A) Reinstatement Waiver of Premium C) completely and permanently disabled C) Return of premium provision g. Income taxes of$55,539 are owed but unrecorded and unpaid. Modify a provision in the insurance contract Which life insurance policy provision will permit Elaine to use the life insurance proceeds before she dies to pay for her medical care? D) Monthly income payments. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. C) transferable assignment Plot the fitted values on the horizontal axis and the residuals on the vertical axis. new apartments on semmes ave, richmond, va,

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