Policy Riders, Provisions, Options, and Exclusions
Why does the ability to assign a life policy matter to an owner?
Answer and explanation
Answer: D. Assignment transfers rights in the contract, which is what makes a policy usable as collateral. It does not by itself shift the premium obligation, does not make the contract paid up, and cannot change who is insured, since the insured is the life the contract is written on.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, Assignment and ownership
More policy riders, provisions, options, and exclusions questions
- A universal life owner wants to vary the timing and amount of premium payments. Which condition remains essential?
- A universal life policy carries a waiver of monthly deduction rider. How does that rider differ from a standard waiver of premium rider?
- A variable life owner takes a policy loan and leaves it outstanding. Which effect should the owner expect?
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
- A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
- An accidental death benefit (double indemnity) rider pays an additional death benefit under what circumstance?
592 Georgia questions like this one.
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