Policy Riders, Provisions, Options, and Exclusions
An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
Answer and explanation
Answer: C. Guaranteed insurability allows additional coverage without new evidence of insurability at specified or alternate option dates, but the premium for that added coverage is generally based on the insured's attained age when the option is exercised.Source: New York State Department of Financial Services — Life Insurance Information for Consumers — Optional Riders & Supplemental Benefits > Guaranteed Insurability
More policy riders, provisions, options, and exclusions questions
- A policyowner's guaranteed insurability rider lists the birth of a child as an alternate option date. What may the owner generally do on that date?
- A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
- A proposed insured disclosed membership in the U.S. military on the application. Under the Compact standard, may the base policy exclude death solely as a result of war or military service?
- A return of premium rider is attached to a permanent life policy. What does the rider add to the amount payable at the insured's death?
- A scheduled-premium life policy's grace period expires without payment, and no nonforfeiture or automatic-loan protection continues coverage. What follows?
- A terminally ill insured accelerates part of a policy's death benefit. What should the beneficiary expect at the insured's later death?
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