Policy Riders, Provisions, Options, and Exclusions
Which party holds the exclusive right to borrow against policy cash values or request nonforfeiture options?
Answer and explanation
Answer: A. Ownership rights (naming beneficiaries, taking policy loans, surrendering cash value) belong exclusively to the policyowner.Source: NAIC Beneficiaries Guide — Parties to a life policy
More policy riders, provisions, options, and exclusions questions
- An elected automatic premium loan provision is triggered, but available cash surrender value is less than the required loan plus interest. Which limitation applies?
- An insured and beneficiary die in quick succession, and the policy does not supply a different survival rule. What issue does a simultaneous-death rule resolve?
- An insured dies by suicide during the policy's valid initial suicide exclusion period. What minimum settlement does the Compact standard require?
- An insured dies during a Texas policy's two-year contestable period. The insurer discovers a material false application statement. What may the insurer do?
- An insured dies on day 20 of a policy's 31-day grace period with an overdue premium. What benefit does the beneficiary receive?
- An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
590 Texas 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.