Policy Riders, Provisions, Options, and Exclusions
What is the primary operational objective of an automatic premium loan (APL) provision?
Answer and explanation
Answer: A. APL uses accumulated cash value to pay overdue premiums automatically, keeping the policy in force if cash value is sufficient.Source: NY DFS Life Insurance Guide — Automatic Premium Loan
More policy riders, provisions, options, and exclusions questions
- A cash-value policyowner stops paying premiums but wants to preserve some policy value. Which group contains nonforfeiture choices?
- A compliance reviewer checks a Texas life policy form before filing. Which entire-contract clause fits Texas law?
- A cost of living rider is attached to a life policy. What does it do as an inflation index rises?
- A designation names three primary beneficiaries but assigns no percentages. All three survive the insured. Under the default stated in the Compact application standard, how are proceeds divided?
- A family has a children's rider that covers eligible children at one premium rate. They later adopt another eligible child. Which rider feature may apply?
- A flexible-premium life policy has lapsed and the owner applies for reinstatement within the contractual period. Which combination may the insurer require?
590 Texas questions like this one.
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