Basic Concept and Principles
Peril is most easily defined as
The cause of a loss
Nonforfeiture option that stays the same in coverage amount
Extended term
Terminal Illness Rider
Living Benefit rider or Accelerated benefit rider
What is NOT a factor considered by an underwriter
Race
Who chooses the settlement option
Policy owner
Cost of Living is tied to what index
Consumer Price Index CPI
Risk is defined as
Uncertainty or Change of loss
What nonforfeiture option still has cash value
Reduced paid up
Disability Rider for universal life insurance
Waiver of cost of insurance or waiver of monthly deduction
Choosing to be a firefighter is what type of hazard
Moral
What is not guaranteed and not taxable
Dividend
Return of premium rider has what insurance component
Increasing term
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
If there is insurable interest exist between the individuals
Dividend is paid by what company
Mutual Company
What stops a policy from canceling
No Lapse Guarantee