Life Insurance Policy Provisions, Options, and Riders
Which owner is the reduction of premium dividend option best suited to?
Answer and explanation
Answer: A. Applying the dividend to the premium directly lowers the owner's outlay, which suits a budget-driven need. Increasing the benefit points to paid-up additions or one-year term, a fund points to accumulation at interest, and inability to pay points to waiver of premium.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, dividend reduction of premium
More life insurance policy provisions, options, and riders questions
- An owner takes a partial surrender in the fourth policy year of a universal life contract. What should be expected?
- An owner wants the original permanent insurance plan to continue for a smaller amount with no further premiums. Which nonforfeiture option fits?
- An owner wants to replace a named irrevocable beneficiary with someone else. What additional requirement applies?
- Does the grace period in section 3203(a)(1) apply to the first premium?
- How do reduced paid-up and extended term differ in what each keeps from the original policy?
- How does a cost of living (COLA) rider adjust policy coverage over time?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.