SDLAHP South Dakota Life Accident and Health Producer - Set 2 - 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 forgets to send a renewal premium by its due date, yet the coverage remains fully in force for a short additional stretch of time before the insurer may treat the policy as lapsed. Which provision creates this short extra window to pay an overdue premium without losing coverage?

the reinstatement provision

the free look provision

the grace period provision

the nonforfeiture provision

Question 42: After reviewing all underwriting information, an insurer places an applicant with well-controlled health conditions into a class that requires a higher premium than an average applicant but still qualifies for coverage. Which of the following correctly names this risk classification?

standard classification

preferred classification

declined, or uninsurable, classification

substandard, or rated, classification

Question 43: A homeowner buys term life insurance timed so its death benefit steadily declines each year, roughly tracking the falling balance owed on a mortgage, while the premium stays level throughout the term. Which of the following correctly names this type of term insurance?

decreasing term insurance

level term insurance

increasing term insurance

single-premium whole life insurance

Question 44: A new agent is studying a specimen policy and wants to identify the single clause that names the parties, states the insurer's promise to pay a death benefit, and describes the general nature of the coverage being sold. Which provision is the agent looking for within the policy?

the free look provision

the insuring clause

the grace period provision

the reinstatement provision

Question 45: A policyowner names her three siblings as beneficiaries, and one sibling dies before the insured, leaving two children of her own. Which method of distribution sends that deceased sibling's share down to her own children rather than splitting it evenly among the surviving siblings?

per capita distribution

designation by class

per stirpes distribution

a contingent beneficiary designation

Question 46: People who already suspect they have a serious illness are disproportionately more likely than healthy individuals to apply for life insurance, skewing the insurer's risk pool toward the applicants it would otherwise most want to avoid. Which of the following names this tendency?

moral hazard against the insurer

the law of large numbers

reinsurance ceded by the insurer

adverse selection against the insurer

Question 47: An insured is diagnosed with a qualifying chronic or terminal condition and wants to draw on part of her death benefit now, while living, to cover extended care costs instead of waiting for a beneficiary to collect it later. Which rider allows this early access to a living policy's benefit?

accelerated death benefit rider

waiver of premium rider

guaranteed insurability rider

return of premium rider

Question 48: A policyowner who is not the insured wants to know the full range of powers she holds by being named owner of the contract, separate from the insured's or beneficiary's own rights. Which term describes this bundle of ownership privileges, including naming beneficiaries, borrowing against value, and surrendering the policy?

the insuring clause powers

incidents of ownership

beneficiary vesting rights

the reinstatement privilege

Question 49: A policyowner instructs the insurer to apply each year's dividend directly toward the premium that would otherwise come due, so her out of pocket payment for that year is smaller than the full stated premium. Which dividend option is she using to lower her annual out of pocket cost?

the accumulate at interest option

the paid up additions option

the reduce premium option

the cash dividend option

Question 50: An insured holding a universal life policy becomes totally disabled, and a rider attached to that policy continues covering the periodic cost of insurance and expense charges deducted from the policy's account value each month during the disability. Which rider, designed for flexible premium universal life contracts, produces this result?

waiver of premium rider

guaranteed insurability rider

cost of living rider

waiver of monthly deduction rider

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