Life Insurance Policy Provisions, Options, and Riders
What happens to dividends left with the insurer under the accumulation at interest option?
Answer and explanation
Answer: B. The insurer keeps the dividends and credits interest at a guaranteed minimum rate, and the owner may withdraw the fund at any time or leave it to be added to the death benefit. Buying additions and paying premiums are the other options.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, accumulation at interest
More life insurance policy provisions, options, and riders questions
- A dividend declared happens to exceed the premium next falling due under this option. What ordinarily follows?
- A New York beneficiary asks the insurer to stop the owner from changing the designation. What is the position?
- A New York owner assigns a life policy as collateral for a loan. What does the assignment achieve?
- A payee elects a life income with a ten year period certain and dies in the eighth year. What does the insurer do?
- A policy designates 'my children' as beneficiary and a child is born after the policy is issued. How is that child treated?
- A policyowner declines several offered cost of living increases in a row. What is the usual consequence under the rider?
621 New York questions like this one.
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