1. Exam Prep
  2. Rhode Island
  3. Life, Accident & Health
  4. Life Policy Provisions Options and Riders

Free Life Policy Provisions Options and Riders Practice Questions

Rhode Island Life, Accident & Health exam — 52 practice questions.

Subtopics: Automatic premium loan, Collateral assignment, Change of ownership, Interest-only option, Fixed-period option, Fixed-amount option, Children's term rider, Return of premium rider, Cost-of-living rider, Spendthrift clause, Common disaster, Life income period certain, Standard provisions, Assignment, 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, Child term rider

Read the Life Policy Provisions Options and Riders study guide

Sample questions & answers

1. The automatic premium loan provision in a whole life policy prevents a lapse by:

Using available cash value to pay an overdue premium

The automatic premium loan uses available cash value to pay an overdue premium and keep the policy in force.

2. A policyowner who transfers certain policy rights to a lender as security for a loan has made a:

Collateral assignment

A collateral assignment transfers certain policy rights to a creditor as security, typically for a loan.

3. The provision that lets the current owner of a life policy name a new owner of the contract is the:

Change of ownership provision

The change of ownership provision allows the policyowner to transfer ownership of the contract to another party.

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

Holds the proceeds and pays the beneficiary interest on them

The interest option leaves the proceeds with the insurer, which pays interest to the beneficiary while holding the principal.

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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.