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  2. Colorado
  3. Life, Accident & Health
  4. Life Policy Provisions Options and Riders

Free Life Policy Provisions Options and Riders Practice Questions

Colorado Life, Accident & Health exam — 52 practice questions.

Subtopics: Ownership rights, Collateral assignment, Spendthrift clause, Suicide clause, Consideration clause, Insuring clause, Convertible term, Renewable term, Dividend options, Child rider, Cash surrender, Return of premium rider, Standard provisions, Assignment, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Riders, Grace period, Reinstatement, Incontestable clause, Misstatement of age, Primary beneficiary, Irrevocable beneficiary, Minor beneficiary, Per capita, Estate as beneficiary, Dividend option cash, Dividend option reduce premium, Dividend option accumulate at interest, Dividend option one-year term, Joint and survivor settlement, Guaranteed insurability rider, Cost of living rider, Payor benefit rider, Child term rider

Read the Life Policy Provisions Options and Riders study guide

Sample questions & answers

1. The owner of a life insurance policy generally has the right to:

Name and change the beneficiary, assign the policy, and exercise policy options

The policyowner holds the ownership rights, including naming or changing the beneficiary, assigning the policy, and electing options.

2. A policyowner who assigns a life policy to a bank as security for a loan has made a:

Collateral assignment

A collateral assignment transfers only a portion of policy rights to a lender as security, leaving the rest with the owner.

3. A spendthrift clause in a life insurance settlement is designed to:

Protect proceeds left with the insurer from a beneficiary's creditors and prevent commutation

A spendthrift clause limits a beneficiary's ability to assign or accelerate proceeds and shields them from creditors while held by the insurer.

4. A typical life insurance suicide provision states that if the insured dies by suicide within the stated period, the insurer will:

Refund the premiums paid rather than the full face amount

During the suicide period, commonly two years, the insurer's liability is limited to a refund of premiums rather than the full death benefit.

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Practice: Life Policy Provisions Options and Riders

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.