Life Insurance Policy Provisions, Options, and Riders
What is fixed and what varies under the fixed-period settlement option?
Answer and explanation
Answer: A. The beneficiary chooses how long the income is to run, and the insurer divides the proceeds with interest across that period to arrive at the instalment. The fixed-amount option reverses this, fixing the payment and letting the duration follow.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fixed period option
More life insurance policy provisions, options, and riders questions
- 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?
- An accidental death benefit (double indemnity) rider pays an additional death benefit under what circumstance?
621 New York questions like this one.
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