Life Insurance Policies
How is the premium for credit life insurance ordinarily paid?
Answer and explanation
Answer: C. The borrower bears the cost, commonly as a single premium financed within the loan itself, which is why disclosure of the charge matters. The lender does not absorb it and the payments do not extend beyond the loan's term.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, credit life premium
More life insurance policies questions
- A variable universal life policy keeps the same stated premium plan and mortality charge schedule, but the owner's selected stock subaccount falls sharply. Which policy element is directly changed first by that investment performance and can later affect whether charges can be paid?
- An annual renewable term policy keeps the same death benefit for each one-year term. What normally happens to its premium from year to year?
- An eligible employee declines the contributory plan at first, then applies to join two years later. What may the insurer require?
- An employee leaving a job asks whether to convert the group cover or buy an individual policy. What should be considered first?
- An employee's group cover ends and the employee dies eighteen days later, having applied for no individual policy. What does section 3220 provide?
- An individual purchases a life insurance policy that provides coverage for exactly one year. At the end of the year, the policyowner can renew the coverage without proving insurability, but the premium will increase based on their attained age. What type of policy is this?
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