Life Insurance Policies
What right does the conversion privilege in a convertible term policy confer?
Answer and explanation
Answer: B. Conversion lets the owner move to a permanent policy without proving insurability again, which protects an insured whose health has declined. It does not enlarge the amount, refund premiums, or extend the term, and the new premium is set at the age used for the conversion.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, convertible term
More life insurance policies questions
- A policyowner’s income varies and the owner wants to adjust premium timing within policy limits while keeping permanent coverage. Which product feature most directly addresses that need?
- A producer illustrates a fixed indexed life policy using the best index period of the last twenty years. What is the objection?
- A prospect wants permanent insurance with adjustable policy elements and cash value allocated to insurer-managed separate-account investments. Which product is the best fit?
- A renewable level term policy reaches the end of its term and the insured is now in poor health. What does renewability provide?
- A renewable term policy states that renewal rights end at a specified age. The insured reaches that age and wants another term. Which statement is most accurate?
- A surgeon aged forty expects high earnings for twenty years and then a much lower income. Which whole life form fits?
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