ALAHI Arizona Life Accident and Health Insurance Exam - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A policyowner stops paying premiums on a whole life contract and elects to use the accumulated cash value to purchase a smaller amount of permanent coverage lasting the insured's entire lifetime. Which of the following options has been selected?

One year term dividend option

Reduced paid up insurance

Cash surrender value

Extended term insurance

Question 42: A whole life policyowner in Flagstaff borrows several thousand dollars against the accumulated cash value and then dies without having repaid any part of that loan. Which of the following describes how the outstanding loan affects the amount the beneficiary receives?

The beneficiary must repay the loan

The beneficiary receives the full face amount

The death benefit is reduced accordingly

The unpaid loan voids the policy

Question 43: A participating policyowner directs each annual dividend toward the purchase of small amounts of additional permanent coverage that require no further premium and build cash value of their own. Which of the following dividend options is being used?

One year term

Paid up additions

Accumulation at interest

Reduction of premium

Question 44: A policyowner becomes totally disabled, satisfies the policy's stated waiting period, and the insurer then keeps the coverage and all of its values fully in force without further premium payments. Which of the following riders produces this result?

Waiver of premium rider

Accidental death rider

Payor benefit rider

Guaranteed insurability rider

Question 45: A young professional in Mesa wants the right to buy additional life coverage at specified future ages and life events, without having to prove good health at the time of each purchase. Which of the following riders provides this right?

Cost of living rider

Accelerated benefit rider

Guaranteed insurability rider

Return of premium rider

Question 46: An insured diagnosed with a terminal illness requests an advance of part of the policy's death benefit to pay for care, with the remaining benefit going to the beneficiary at death. Which of the following riders permits this?

Accidental death and dismemberment rider

Waiver of premium rider

Family term rider

Accelerated benefit rider

Question 47: A grandmother owns and pays for a life policy insuring her grandchild, and wants premiums to continue being paid if she dies or becomes disabled before the child reaches adulthood. Which of the following riders addresses this concern?

Cost of living rider

Spouse term rider

Payor benefit rider

Waiver of premium rider

Question 48: A policy includes a rider under which the insurer pays twice the face amount if the insured dies as a direct result of an accident within a stated period after the injury. Which of the following riders is described?

Return of premium rider

Guaranteed insurability rider

Accelerated benefit rider

Accidental death rider

Question 49: An insured takes their own life fourteen months after the policy was issued, and the beneficiary asks what the insurer will pay under the contract's terms. Which of the following describes the usual result under the suicide clause?

Half the face amount is paid

Premiums paid are returned

The full face amount is paid

Nothing at all is payable

Question 50: A person holds the right to change the beneficiary, assign the contract, take a policy loan and surrender the policy for its cash value. Which of the following identifies the party who holds these rights under a life policy?

The policyowner

The producer of record

The beneficiary

The insured

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