Life Insurance Policy Provisions, Options, and Riders
A dividend declared happens to exceed the premium next falling due under this option. What ordinarily follows?
Answer and explanation
Answer: D. The insurer pays the surplus over to the owner or applies it under one of the other dividend options, commonly accumulation at interest. Forfeiture, a reduction in the face amount and an idle holding are not how the excess is treated.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, dividend reduction of premium
More life insurance policy provisions, options, and riders questions
- What may an insurer promise about the dividends on a participating policy?
- What need does a children's term rider chiefly meet?
- What notice does section 3230 require in the application for a policy providing accelerated death benefits?
- What problem does the entire contract provision address?
- What problem is the common disaster clause written to solve?
- What restriction applies to an owner who names an irrevocable beneficiary?
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