Life Insurance Policy Provisions, Options, and Riders
Who may elect a settlement option other than cash payment, and when may that election be made?
Answer and explanation
Answer: B. The owner may fix the mode of settlement while the insured lives, which binds the beneficiary, and where the owner has not done so the beneficiary chooses at the time of claim. The insurer does not impose an option, and the owner's right is not confined to the application.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, settlement option election
More life insurance policy provisions, options, and riders questions
- Under a fixed-period settlement, what happens to the instalment if the beneficiary shortens the period elected?
- Under the cash dividend option, what does the participating policyowner receive?
- What benefit does a return of premium (ROP) term rider provide if the insured survives to the end of the term?
- What condition must be satisfied before a waiver of premium rider waives the policyowner's premium obligations?
- What delay may an insurer impose on paying a policy loan on a fixed policy?
- What distinguishes a class beneficiary designation from an individual beneficiary designation?
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