Life Insurance Policy Provisions, Options, and Riders
How does an automatic premium loan come to apply to a policy?
Answer and explanation
Answer: A. The provision must be elected by the owner, either on the application or by later written request, and it then operates without further instruction. It is not automatic by law, not triggered by the insurer's assessment, and not gated on a ten year duration.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, automatic premium loan
More life insurance policy provisions, options, and riders questions
- An insured becomes totally disabled and holds a waiver of cost of insurance rider. When does the waiver ordinarily begin?
- An insured dies with a policy loan outstanding. How does the insurer settle the claim?
- An insured dies with dividends accumulated at interest still on deposit. What does the beneficiary receive?
- An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
- An insured wants a benefit that supplies income after a qualifying total disability rather than merely waiving policy charges. Which rider most directly fits?
- An insured with an accidental death and dismemberment rider loses the sight of both eyes in a covered accident. What does the rider ordinarily provide?
621 New York questions like this one.
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