Policy Riders, Provisions, Options, and Exclusions
Under the uniform standards, when does an additional interest rate begin to apply to unpaid death proceeds?
Answer and explanation
Answer: D. The standards provide that interest accrues from the date of death at applicable rates, with an additional 10 percent annually beginning 31 days after proof of death and determination of liability. Ordinary interest runs from death, while the additional rate is tied to that later point.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, Interest on proceeds
More policy riders, provisions, options, and exclusions questions
- A terminally ill insured receives an accelerated death benefit. How does federal tax law generally treat the payment?
- A universal life owner wants to vary the timing and amount of premium payments. Which condition remains essential?
- A universal life policy carries a waiver of monthly deduction rider. How does that rider differ from a standard waiver of premium rider?
- A variable life owner takes a policy loan and leaves it outstanding. Which effect should the owner expect?
- 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?
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