Policy Riders, Provisions, Options, and Exclusions
Which dividend option allows a participating policyowner to purchase additional small paid-up permanent coverage without evidence of insurability?
Answer and explanation
Answer: A. Paid-up additions use declared dividends to buy small single-premium permanent policies that increase cash value and death benefit.Source: Texas Department of Insurance Guide — Dividends and Options
More policy riders, provisions, options, and exclusions questions
- What dual protection does a disability income rider provide when attached to a life insurance policy?
- What element of consideration does the insurance company bring to a life insurance contract?
- What expense is a long-term care insurance feature intended to cover?
- What happens to life insurance proceeds if the primary beneficiary predeceases the insured, and a contingent beneficiary is named?
- What is the function of a payor benefit rider attached to a juvenile life insurance policy?
- What is the main purpose of a life policy's free-look period?
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