Life Insurance Policy Provisions, Options, and Riders
What may an insurer promise about the dividends on a participating policy?
Answer and explanation
Answer: B. Dividends depend on the insurer's mortality, expense and investment results, so they may be illustrated but not guaranteed either in size or in occurrence. Promising a scale, a minimum or a starting year would misrepresent the participating contract.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, dividends and guarantees
More life insurance policy provisions, options, and riders questions
- What notice does section 3230 require in the application for a policy providing accelerated death benefits?
- What problem does the entire contract provision address?
- What problem is the common disaster clause written to solve?
- What restriction applies to an owner who names an irrevocable beneficiary?
- What right does a guaranteed insurability rider (GIR) grant to the policyowner?
- What role does proof of death play in a New York life claim?
621 New York questions like this one.
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