Free Life Policy Provisions Options and Riders Practice Questions
South Carolina Life, Accident & Health exam — 108 practice questions.
Subtopics: Grace period, Contingent beneficiary, Spendthrift clause, Assignment, Automatic premium loan, Misstatement of age, Accelerated death benefit, Convertibility, Term rider, Interest-only option, Fixed-amount option, Paid-up additions, Free look with replacement, Free look refund, Incontestable riders, Mutual rescission, Delayed death claim interest, Reinstatement interest, Policy loan deferral, Policy loan interest, Dividend options, Permitted exclusions, Aviation exclusion, Waiver authority, Beneficiary designation, Whole contract, Group life grace period, Group life conversion, Group policy termination, Death during conversion, Facility of payment, Group certificates, Standard provisions, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Riders, Reinstatement, Incontestable clause, Suicide clause, 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, Incontestability, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Accelerated benefits, Premium modes, Free look, Entire contract, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. During the grace period of an individual life policy issued in South Carolina, if the insured dies before paying the overdue premium, the insurer will:
Pay the claim less the premium due
The policy stays in force during the 31-day grace period; if a claim arises, any premium due may be deducted from the amount payable (S.C. Code 38-63-220(i)).
2. A contingent beneficiary receives the life insurance proceeds when:
No primary beneficiary survives
A contingent (secondary) beneficiary is paid only if the primary beneficiary is not living at the insured's death.
3. A spendthrift clause in a life insurance policy is designed to:
Protect proceeds from beneficiaries' creditors
A spendthrift provision keeps proceeds held under a settlement agreement from being transferred or reached by legal process; S.C. Code 38-63-50 makes these provisions valid.
4. An absolute assignment of a life insurance policy:
Transfers all ownership rights
An absolute assignment transfers complete ownership of the policy to the assignee.
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Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
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.
