Life Insurance Policy Provisions, Options, and Riders
What does the cash surrender nonforfeiture option give an owner who ends a permanent policy?
Answer and explanation
Answer: D. Surrendering pays the accumulated cash value net of any surrender charge and any loan with interest, and it ends the coverage. Reduced paid-up and extended term are the two other nonforfeiture options, and a premium refund is not one of them.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, nonforfeiture cash surrender
More life insurance policy provisions, options, and riders questions
- An insured and the primary beneficiary die in the same accident and the common disaster clause applies. Where do the proceeds go?
- An insured applies to accelerate the death benefit. What must the insurer do before paying under section 3230?
- 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?
621 New York questions like this one.
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