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

Free Life Policy Provisions Options and Riders Practice Questions

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

Subtopics: Lump-sum option, Interest-only option, Fixed-period option, Fixed-amount option, Life income option, Assignment, Ownership rights, Automatic premium loan, Common disaster, Spendthrift clause, Accelerated death benefit, Conversion privilege, Standard provisions, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Dividend options, Riders, Grace period, Reinstatement, Incontestable clause, Suicide 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, Return of premium rider, Child term rider

Read the Life Policy Provisions Options and Riders study guide

Sample questions & answers

1. The life insurance settlement option that pays the entire death benefit to the beneficiary at once is the:

Lump-sum (cash) option

The lump-sum option pays the full death benefit to the beneficiary in a single payment, which is the default for most policies.

2. Under the interest-only settlement option, the insurer:

Retains the proceeds and pays interest to the beneficiary

With the interest-only option, the insurer holds the proceeds and pays the beneficiary the interest earned, leaving the principal intact.

3. The fixed-period settlement option pays the proceeds:

In equal installments over a specified number of years

The fixed-period option distributes principal and interest in equal payments over a chosen number of years.

4. The fixed-amount settlement option pays:

A chosen dollar amount each period until the proceeds and interest are exhausted

The fixed-amount option pays a selected dollar amount each period until the proceeds plus interest run out.

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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.