Life Insurance Policy Provisions, Options, and Riders
An insured's health has deteriorated badly since issue. How does that affect the purchase of paid-up additions?
Answer and explanation
Answer: C. Paid-up additions are bought without new underwriting, so declining health does not stop them or raise their cost, which makes the option valuable to an insured who has become uninsurable. Attained age, not health, sets what each dividend buys.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, paid-up additions and underwriting
More life insurance policy provisions, options, and riders questions
- What is the role of a tertiary beneficiary in the succession of beneficiaries?
- What may an insurer promise about the dividends on a participating policy?
- What need does a children's term rider chiefly meet?
- What notice does section 3230 require in the application for a policy providing accelerated death benefits?
- What problem does the entire contract provision address?
- What problem is the common disaster clause written to solve?
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