Nonforfeiture and Settlement options

Once a policy has lapsed, which of the following governs the way excess premiums are treated? Page 140

What happens to cash value accumulations of life insurance policies if the insured stops paying premiums for any reason? Page 140

If an insured allows her policy to lapse and takes the cash value, which of the following nonforfeiture options has she chosen? Page 140

Which of the following is a correct statement about the reduced paid up insurance nonforfeiture option when an insured allows a life insurance policy to lapse? Page 141

Raul allows his permanent life insurance policy to lapse. He cannot be contacted, so by default his cash values are used to purchase single premium, paid up term coverage in an amount equal to the original policy. Which of the following nonforfeiture options is described in this scenario? Page 141

Rhonda has a life insurance policy with a face amount of $75,000. She borrows $10,000 against the policy, pays back $9,000, then allows the policy to lapse. At the time of lapse, the cash value is $30,000. What is the single premium available for an extended term policy, and what is the face amount of the new policy? Page 141-142

Under the extended term nonforfeiture option, any outstanding loan amount deducted from: Page 142

When a life insurance policy lapses, Page 142

Settlement options, other than lump sum payments, from life insurance policies can Page 142-143

Elaine’s father dies naming her as the beneficiary of his life insurance. However, she receives only interest from the earnings on the policy’s death benefit which have been invested by the insurer. Which of the following settlement options had Elaine’s father chosen? Page 143

Larry’s father, having selected the interest settlement option, dies naming Larry as the beneficiary of his life insurance. Which of the following are potential beneficiaries of the money still on deposit with the insurance company? Page 167

Sam is the beneficiary of his father’s life insurance policy. The policy stipulates a fixed period settlement option, a form of annuity. Which of the following factors will determine the amount of the payment Sam will receive? Page 144

Zeke’s mother names him as beneficiary under her life insurance policy. The policy stipulates a fixed amount settlement option, a form of annuity. How long will Zeke receive payments? Page 145

Tom’s father names him as beneficiary of his life insurance. The settlement option under the policy is life income. Which of the following can Tom’s father select as installment payments? Page 145-146