Policy Riders, Provisions, Options, and Exclusions
A buyer compares annual and monthly premium modes for the same term policy. Which cost point should the buyer verify?
Answer and explanation
Answer: A. NY DFS advises that more frequent premium modes generally carry a higher total cost. The buyer should compare modal amounts and total annual cost rather than assume monthly payments are cheaper overall.Source: New York State Department of Financial Services — Consumer Life Insurance FAQ — What premium mode should I choose when purchasing term life insurance?
More policy riders, provisions, options, and exclusions questions
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
- A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
- After a Texas life policy has been in force for 2 years during the lifetime of the insured, under what condition can the insurer contest a claim?
- An accidental death benefit (double indemnity) rider pays an additional death benefit under what circumstance?
- An applicant discloses private-pilot activity during underwriting. How may an approved policy address that identified aviation risk?
- An applicant discloses work as a demolition blaster, and underwriting approves the policy with an occupation exclusion. Which provision is consistent with official life policy standards?
590 Texas questions like this one.
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