Policy Riders, Provisions, Options, and Exclusions
A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
Answer and explanation
Answer: D. A term rider provides temporary additional life insurance for the rider's stated period. It does not make the added amount permanent, prevent lapse for nonpayment, or replace the base policy's cash value.Source: New York State Department of Financial Services — Life Insurance Information for Consumers — Optional Riders & Supplemental Benefits > Term Riders
More policy riders, provisions, options, and exclusions questions
- A life policy contains a status-type war exclusion and the insured, a service member, dies of an illness while stationed overseas in peacetime. How does the exclusion operate?
- A parent pays premiums on a juvenile life policy and dies before the insured child reaches majority. If the policy has a payor benefit rider and its conditions are met, what happens next?
- A parent wants life proceeds reserved for a young child. Which arrangement best addresses the problem that an insurer will not pay proceeds directly to a minor?
- A participating whole life owner wants to apply a declared dividend toward the next premium. Which dividend use matches that goal?
- A permanent policyowner withdraws the entire available cash value. What may happen to the policy?
- A policy beneficiary designation reads 'my surviving children, per capita.' If one child predeceases the insured leaving two offspring, how are proceeds divided?
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