Life Insurance Policy Provisions, Options, and Riders
Under the cash dividend option, what does the participating policyowner receive?
Answer and explanation
Answer: D. The cash option pays the declared dividend straight to the owner. Applying it to the next premium, buying paid-up additions and leaving it on deposit at interest are the other dividend options.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, dividend option cash
More life insurance policy provisions, options, and riders questions
- A spouse rider is about to end at the stated age. What does the conversion feature ordinarily allow?
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
- A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
- A widow wants income now but the capital preserved for her children. Which settlement option answers that?
- A young couple with three children want the whole household covered at modest cost under one contract. Which rider fits?
- Against what does an owner borrow when taking a policy loan?
621 New York questions like this one.
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