Policy Riders, Provisions, Options, and Exclusions
A universal life policy carries a waiver of monthly deduction rider. How does that rider differ from a standard waiver of premium rider?
Answer and explanation
Answer: C. Universal life has no fixed required premium, so the disability benefit is expressed as a waiver of the monthly deductions, the cost of insurance and expense charges taken from the account value.Source: NAIC Life Insurance Buyer's Guide — Universal life: monthly deductions and disability waiver
More policy riders, provisions, options, and exclusions questions
- An owner signs a policy assignment before the insurer receives notice. The insurer takes an allowed action without knowledge of it. Under the Compact standard, how is the timing handled?
- An owner wants only the children who survive the insured to divide the class benefit equally, without preserving a deceased child's branch. Which designation most directly expresses that intent?
- An owner wants the original permanent insurance plan to continue for a smaller amount with no further premiums. Which nonforfeiture option fits?
- An owner wants to replace a named irrevocable beneficiary with someone else. What additional requirement applies?
- Flexible premium features in universal life policies allow the owner to perform which action?
- How does a cost of living (COLA) rider adjust policy coverage over time?
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