Life Insurance Policy Provisions, Options, and Riders
Against what does an owner borrow when taking a policy loan?
Answer and explanation
Answer: B. A policy loan is advanced by the insurer with the cash value as security, which is why no credit check or repayment schedule applies. The face amount, the owner's general credit and future dividends are not what secures it.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, policy loans
More life insurance policy provisions, options, and riders 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?
- A widow wants income now but the capital preserved for her children. Which settlement option answers that?
- A young couple with three children want the whole household covered at modest cost under one contract. Which rider fits?
- An accidental death benefit (double indemnity) rider pays an additional death benefit under what circumstance?
- An insured and the primary beneficiary die in the same accident and the common disaster clause applies. Where do the proceeds go?
621 New York questions like this one.
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