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

Free Life Policy Provisions Options and Riders Practice Questions

South Carolina Life, Accident & Health exam — 52 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, Standard provisions, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Dividend options, 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

Read the Life Policy Provisions Options and Riders study guide

Sample questions & answers

1. If a life insurance premium is not paid by its due date, the provision that prevents immediate lapse for a short time is the:

Grace period

The grace period keeps the policy in force for a short time after the premium due date, preventing immediate lapse.

2. A contingent beneficiary receives the life insurance proceeds when:

The primary beneficiary has died before the insured

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 settlement proceeds from a beneficiary's creditors

A spendthrift clause restricts a beneficiary's ability to assign proceeds and shields them from the beneficiary's creditors.

4. An absolute assignment of a life insurance policy:

Transfers all ownership rights to another party

An absolute assignment transfers complete ownership of the policy to the assignee.

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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.