Life Insurance Policy Provisions, Options, and Riders
Under a fixed-period settlement, what happens to the instalment if the beneficiary shortens the period elected?
Answer and explanation
Answer: D. The proceeds and the interest on them are divided across the period chosen, so a shorter period produces a larger instalment and a longer period a smaller one. The insurer neither guarantees a level payment across different periods nor absorbs the difference.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fixed period option
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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