Policy Riders, Provisions, Options, and Exclusions
A grandparent buys a juvenile life policy on a 5-year-old grandchild with a payor benefit rider. The grandparent dies 3 years later. What occurs regarding policy premiums?
Answer and explanation
Answer: D. Under the payor rider, premiums are waived following the payor's death until the juvenile reaches the specified age.Source: NAIC Life Insurance Guide — PDF page 6, Payor Rider Application
More policy riders, provisions, options, and exclusions questions
- What condition must be satisfied before a waiver of premium rider waives the policyowner's premium obligations?
- What distinguishes a collateral assignment from an absolute assignment of a life policy?
- What does a life policy's suicide provision generally limit?
- What does an accelerated death benefit provide when its qualifying conditions are met?
- What does an accidental death benefit rider generally provide when the insured dies from a covered accident?
- What does reinstatement do to an eligible lapsed life policy?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.